PARIS -- Registrations in France plummeted by about 35 percent in July from the same period a year ago, according to data issued by country's carmakers lobby, CCFA-PFA.
Registrations were 115,713 last month, CCFA said.
The French market is up by about 16 percent over the first seven months, the association said.
The CCFA said the global chip shortage and a new surge in COVID-19 infections are weighing on the prospects for a strong rebound in new-car sales.
The association currently forecasts growth in the range of 9 percent to 10 percent, but that could be revised down.
"We think it might be difficult to achieve 1.8 million of sales this year," a CCFA-PFA spokesperson said on Sunday.
Last year, French registrations fell to 1.65 million from 2.21 million in 2019 as the coronavirus pandemic brought car factories to a halt.
A lack of crucial semiconductors and uncertainty surrounding the novel coronavirus pandemic are affecting most automakers, including Renault and Stellantis.