Semiconductor shortages and slow deliveries of new cars will continue to be a problem in 2022

The great shortages of semiconductors, but also the reduction of hours in many production plants, were the two main problems of the automotive industry that changed the sales data around the world for the past year. It was definitely a difficult year, as most dealerships had few cars in their shop windows and long delivery times. On the contrary, there was an increase in sales of electric vehicles that was not discouraged by the pandemic, but also a trend of buying SUVs of all categories.

2022 essentially starts with the same problems, as shortages continue to make dealers struggle to find cars to sell to their customers, while the fixed liabilities of the stores follow an upward trend.

At the same time, the pandemic has created new sales data. The industry lost about $ 210 billion in revenue in 2021, according to business management company AlixPartners. As chip supplies begin to grow, significantly improving their flow to factories, the situation is far from returning to pre-pandemic manufacturers. The industry now faces other shortages, such as tires, indoor plastics and seat foam.

In all, automakers around the world produced about 8 million fewer vehicles than planned. Even if production recovers, those involved in the automotive sector will not be able to rebuild stocks by 2022, according to JD Power analyst Tyson Jominy.

This has the effect of increasing the price of a car. The upward trend of spare parts and their lack leads to constant price increases.

However, the pandemic opened up new sales prospects. Internet sales of new cars have increased. Even after the market opened, more and more customers continue to buy their cars online. This in a way suits the dealers who in the midst of the lack of new cars, can present them online.

The comfort to the whole situation is the increase in sales of electric cars and analysts predict that the number of models with greater autonomy will have even better sales. Of course the biggest problem remains the charging stations which can not cover geographically large areas of many countries.

The new Tesla has shown that it can not only enter, but also take a large share of the market, breaking the data so far in the automotive field. Of course there are other companies like Rivian, which has a market capitalization of over $ 90 billion and says it is ready to repeat what Tesla has achieved. The new year for Tesla is expected to be good, having set a new sales record.

Some car manufacturers, although they had promised that in 2020 they would have a very good presence in autonomous driving, nevertheless were denied. But some say they are ready to complete their plans, which is to present their models in level 3 autonomous driving.

Finally, China, the world’s largest car market, wants to attack the automotive industry. The companies Geely and Great Wall want to establish bases in key points of states and it is certain that 2022 will be a year that they will try to lay the foundations for their growth in both Europe and the USA.

SOURCE: AMPE