New car sales in Germany were down in August for the second consecutive month, data released on Friday showed, in the midst of continuing chip shortages that have slowed the sector’s recovery.

In total, 193,307 new cars were registered in Europe’s top economy in August, a 23 per cent drop compared with the same month last year, according to the federal transport authority.  It follows a fall of 25 per cent in the month of July.

After a strong recovery at the beginning of the year, a global shortage in computer chips – key components in both electric and conventional vehicles – has held the sector back.

The renewed scarcity is in part the result of renewed curbs over outbreaks of COVID-19, in particular in Malaysia, where key semiconductor production facilities are located.

The renewed scarcity is in part the result of renewed curbs over outbreaks of COVID-19, in particular in Malaysia, where key semiconductor production facilities are located

With the disruption to chip supplies “the challenge has now become even greater, so that our sales in the third quarter will probably be noticeably below the second quarter,” the CEO of German carmaker Daimler Ola Kaellenius told German magazine Automobilwoche on Thursday.

In late August, the same issue led the largest German carmaker Volkswagen to scale back production at its central plant in Wolfsburg.

A return to sales at pre-pandemic levels was “still not in sight”, the German carmakers federation VDA said in a statement. 

Nonetheless, since the beginning of the year, 1,820,589 cars have been sold, a 2.5 per cent increase compared to the same period last year. 

Electric vehicles in particular have seen strong growth, with 79.5 per cent more sold in August compared with last year, bringing their share of the market to 14.9 per cent.