We’ve read a lot about the chip shortage and background in the automotive industry. Due to the lack of chips, it will be a challenge for car manufacturers to produce models with more options and functions. Surveys show that car users expect new car models to continue to deliver new technologies.
So, what exactly happened in the automotive industry? During the shutdowns caused by Covid’s first wave, manufacturers cut down production and parts orders. When the sales started to recover, a semiconductor deficit developed, leading to a significant reduction in production. While semiconductor manufacturing capacities are still below demand, production volumes will still decline in the first half of 2022. What’s worse, the industry is also facing a shortage of other products such as tires, inner plastics, and seat foam.
Automakers worldwide produced about 8 million fewer vehicles than planned last year. According to economic analysts, even if production picks up, traders will be able to start rebuilding their stocks by the 2nd quarter of 2023. As a result, shoppers have to expect limited choice - while no reduction in prices is expected.
Some Central European markets posted strong gains over the past month. Slovakia improved the number of registered vehicles by 72.6 percent. (!), and in Romania the result is almost as impressive (+55.5%). Unfortunately, the spectacular success did not materialize in Poland where sales fell by 10.2 percent.
Want to talk about how we face the challenges and manage international fleets, contact Business Lease via e-mail or phone at:
internationalsales@businesslease.com
T +31 30 202 06 03
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