Microchip Shortage Reduces Global Annual Car Production by Over 10 Million Units
The shortage of semiconductor chips has been wreaking havoc in the global automotive car market, forcing many automakers to scale back their production. AutoForecast Solutions recently revealed that carmakers have sold 10 million fewer units this year due to the scarcity of microchips.
Media reports suggest that the crisis may have subsided but carmakers are continuing production cuts to adapt to the far-reaching repercussions.
AutoForecast Solution’s analysis indicates that further production cuts are likely, taking the deficit to 11.2 million before the end of the 2021 calendar year.
The report also details that the production and sales figures have mostly been reduced in more advanced car markets such as North America, Europe, the UK, China, whereas the production and sales figures remain largely unaffected in developing car markets like India, Pakistan, Bangladesh, Sri Lanka, Indonesia, Malaysia, and the Philippines, etc.
Experts surmise that the latter markets have a simpler lineup of vehicles that do not essentially require microchips to function properly. This also explains why companies such as the Toyota Indus Motor Company, Honda Atlas Cars, Pak Suzuki Motors, and other automakers in Pakistan continue to remain profitable.
The shortage is expected to last until 2023, as predicted by industry experts. Given this concern and other issues with the global supply chain, how each market performs in the future will be interesting to see.