It will come as no surprise that the automotive industry is experiencing a period of rapid change. With the electric-only growing stronger, and hybrid engines on the rise, it is clear that technological innovation is a high demand among consumers. Because of this, manufacturers have been launching new cars at a pace never seen before, but it has been a struggle to keep up with recent global supply chain challenges. However, at Dicksons, we’re beginning to see the situation starting to recover slowly but surely.
What Was Behind the Global Shortage?
The main problem affecting the supply of new cars is a global shortage of semiconductors, or ‘chips,’ the material found in most electronic devices from washing machines and home computers to televisions and new cars. Every modern car relies on semiconductors in some way, and a global shortage of semiconductor computer chips continues to roil the auto industry, with global sales and production plummeting.
These issues can be traced back to the coronavirus (COVID-19) pandemic and are an ongoing issue due to the resulting supply chain crisis. The impact closed many semiconductor factories and others are now understaffed, severely impacting global supply. Every new car has about 1,500 of these chips, which act as the vehicle’s ‘brains,’ but high demand for electronics during the COVID-19 pandemic has led to a shortage of semiconductors.
As well as more people working from home, which saw an increase in demand for laptops, there has also been the introduction of Xbox Series X and PS5 games consoles which, along with cars, has seen a serious market rush for semiconductors.
Socioeconomic Impact of War
Supply issues are sure to persist in the coming months and into 2023, with production problems and fallout from the Russo-Ukraine war still disrupting sales and production numbers, according to several manufacturers.
Waiting lists for new cars remain long and the result of this has seen prices rise in the used car market. Volkswagen Group has orders for almost half a million cars across Europe alone so the possibility of getting a new VW on your driveway quickly is currently slim. However, you might be lucky and find yourself a used car deal!
A Promising Recovery
While the supply chain shortages that have hampered car sellers since the onset of the COVID-19 pandemic appear to be easing, a full market recovery is unlikely for at least 18 months to two years. However, for the first time in years, we’ve seen some popular cars, such as the Nissan Qashqai and Kia Sportage, become more readily available recently, with dealers reporting that vehicles can be delivered within weeks.
At Dicksons, our friendly team of experts are on hand to help you every step of the way. While we begin to see waiting times for new cars, and car parts, begin to ease, we will be transparent with you about the turnaround time for your new vehicle. We’ll keep you in the loop and provide our friendly service from the moment you step into the showroom for the first time, to the moment you drive away and each time you come in for a service.