Global semiconductor shortage continues to hurt car buyers in 2022

January 07, 2022 09:03 PM AEDT | By Samta

Global semiconductor shortage continues to hurt car buyers in 2022 — Image source: © Bialasiewicz | Megapixl.com

How is the demand?

The pandemic has slowed down the demand for new vehicles since early 2020, while supply chain disruptions add up to the situation. The worldwide shortage of chips, a vital component in all vehicle types, has significantly decreased the global car output, taking over big companies like Toyota. Toyota was also expected to cut its global car production by 40% as the ongoing semiconductor shortage also hit it.

This global chip shortage is likely to continue in 2022, impacting both the car buyers and sellers, as the lack of vehicle inventory has led to a massive increase in vehicle prices. On the other hand, it is difficult to conclude anything on the ongoing supply chain disruption.

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According to analysts, car dealers with lower inventory levels are more profitable as the logistic crisis has vastly impacted the complex automotive industry. As a result, the car price has jumped by 30-50%, making it a massive deal for the new car buyers.

Bottomline

Even though the situation is likely to remain imbalanced throughout the first half of FY22, hopes are still high for some improvement by July.

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