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Automakers registered the fewest new vehicle sales in the EU since 1996 as persistent supply chain snarls and record inflation afflict the industry, Bloomberg reported.

New vehicle sales in the EU and four other states tracked by the European Automobile Manufacturers’ Association fell 17 percent to 1.07 million last month, it said in a statement.

Volkswagen AG was the hardest-hit major carmaker, with registrations dropping 24 percent from a year ago.

While manufacturers including Volkswagen, BMW AG and Mercedes Benz AG last month said the shortage of semiconductors had started to ease, it takes time for any boost in production to flow through to showrooms and enable dealers to work down order books. Manufacturers are also dealing with raw material and energy costs, which are contributing to vehicle price increases.

“The industry will not overcome supply constraints anytime soon,” LMC Automotive said in an update this month. “Another concern relates to underlying demand, which has weakened in recent months as the economic outlook has deteriorated.”

Sales in major markets — including Germany and the UK — might return to growth this month due to an easy year-ago comparison, according to Bloomberg Intelligence.