Microchip shortage dampens Swiss car market

The proportion of new electric cars is increasing, but they remain a rare breed on Swiss roads. © Keystone / Christian Beutler

A recovery in the number of newly registered cars in Switzerland has been constrained by global bottlenecks in the supply of computer chips.

More than 350,000 new vehicles entered service on Swiss roads in 2021, marking a significant increase from the first year of the pandemic. But numbers are still almost 15% below levels seen in 2019 and were subdued last year because suppliers were unable meet demand.

“The global shortage of certain electronic components and the difficulties in international logistics meant car manufacturers were unable to deliver all the vehicles that were ordered,” said the Federal Statistical OfficeExternal link on Monday.

As a result, the average age of Swiss cars on the road has climbed from 8.7 years to 9.3 since 2019.

The international shortage of microchips is the principal cause of the current problem. Chip manufacturers in the United States are building up production but have warned it may take some time before capacity can be built up to meet the shortfall.

Of the vehicles that were delivered to Switzerland, more than a fifth of passenger cars were electric or hybrid models, which is above the government target of 15%. Demand for petrol and diesel-powered cars continued to decline.

Combined with existing cars on the road, the share of electric cars has increased from 0.9% in 2020 to 1.5% in 2021, and from 0.5% to 0.9% for plug-in hybrids.

And with travel options limited by Covid-19 lockdowns and border restrictions, the number of new motorhomes registered in 2021 increased by more than a quarter.