The European Automobile Manufacturers’ Association (ACEA) has raised concerns over disruption to vehicle manufacturing in Europe, citing a growing shortage of vital microchips.

The issue stems from a halt in exports of Nexperia chips from China, triggered by an ongoing political dispute that remains unresolved.

According to the ACEA, the shortage affects the type of simple microchips integral to the control units of vehicle electrical systems.

The association warned that automakers worldwide, and especially in Europe, are being severely impacted by the restricted supply.

While manufacturers are currently relying on reserve stocks, the ACEA reports that these are rapidly diminishing and some companies expect imminent halts in assembly line operations.

Although there are multiple alternative suppliers, the association notes that it will take months to increase additional capacity to address the shortfall.

ACEA Director General Sigrid de Vries said: “We know that all parties to this dispute are working very hard to find a diplomatic solution. At the same time, our members are telling us that part supplies are already being stopped due to the shortage.

“This means assembly line stoppages might only be days away. We urge all involved to redouble their efforts to find a diplomatic way out of this critical situation.”

Prior to this, ACEA noted in its latest figures that EU new-car registrations for the year through September 2025 were 0.9% higher than in the same period a year before, continuing a trend of modest growth over the past three months.

Battery-electric vehicles represent 16.1% of registrations so far in 2025, up from 13.1% for the equivalent period of 2024.

Hybrid-electric models remained the most common powertrain, representing 34.7% of the market.