This would mean around 7% more new cars on the roads than in 2021, association president Hildegard Müller said.

Last year, there were 2.62 million new passenger car registrations in Germany, the home of well-known brands such as Volkswagen, BMW, and Mercedez-Benz.

Sales of passenger vehicles have been significantly depressed by supply bottlenecks for semiconductors in particular.

Müller had previously said that the problems were likely to continue in the current year.

The German car industry is still lagging well below pre-pandemic levels. In 2020 the figure of new registrations was 3.6 million, according to government figures.

Müller called on Wednesday for more speed in the development of European semiconductor and battery production.

“If Germany also wants to be a world market leader in the future, it needs to build semiconductor factories now,” she announced at the presentation of the annual outlook.

“Initial plans to expand battery production in Germany and Europe already exist. It is important for the plans to be implemented promptly so that value creation for the automotive industry can be kept in Europe,” she said.