In 2022, sales for the Renault Group will drop by 5.9%, and Europe’s order book will reach a new high.

Renault’s (EPA:RENA) group sales fell by 5.9% in 2022, to 2,051,174 vehicles. This was the fourth year in a row that sales fell due to problems with capacity and the supply chain, the company said on Wednesday.

The group, which is in the middle of turning things around, said that its order book in Europe was at a record high of 3.5 months of sales.

A day after saying that sales of its most popular brand, Renault, would go down by 9.4% in 2022, the company said that this was partly offset by the performance of Dacia, whose sales went up by 6.8%.

Related: Renault raises its goal for operating margin, but a deal with Nissan remains elusive.

The COVID-19 crisis and a global chip shortage hurt the French carmaker more than most of its competitors. To make more money, the company is betting on higher-margin cars and electric cars.

It was said on Tuesday that the Renault brand, which makes up two-thirds of the group’s sales, was the third best-selling electric vehicle brand in Europe, after Toyota and Tesla (NASDAQ:TSLA), with 228,000 units sold, which is a 12% increase from 2021.

The company says that it is starting the year with a better portfolio and more valuable stocks, which gives it confidence that it will be able to grow sales again in 2023.

But its executives have said that Tesla’s recent announcement of price cuts around the world is something that Renault and its competitors will have to deal with.

Related: After Russia left, Renault’s first-half sales dropped by 30%.

In November, Renault announced a major reorganization. As part of this plan, it will split its operations into five separate businesses, strengthen its relationship with China’s Geely, and spin off its electric vehicle business by listing it on the stock market this year. It is also talking with its Japanese partner Nissan (OTC:NSANY) about changing the way their long-term partnership works.