The ongoing global shortage of semiconductor chips could affect global vehicle production in 2021 and 2022 which could lead to huge losses for the auto industry, according to reports.
The global auto industry’s vehicle production could decline by 6.3-7.1mn vehicles due to the shortage and manufacturers are likely to face difficulties till H2 2022, owing to the supply chain disruptions.
The shortage of chips will not be over before Q2 2022, said a report by IHS Markit — a projection that is worrying for the global auto industry.
Domestic car manufacturers have also been severely affected due to the ongoing global chip shortage, with almost all manufacturers facing disruptions.
This has led to an increase in production delays as the industry witnesses a surge in demand for cars and SUVs ahead of the festive season. As demand continues to be on the rise, manufacturers have decided to keep production lines running by reducing chip usage to the minimum.