Why there is a vehicle shortage
New car sales in the UK fell to their lowest level in two decades in March 2022 as the global shortage of semiconductors hampered factory output. March registrations fell to 243,479, which was 14 percent down on a year earlier and their lowest level since 1998, according to the Society of Motor Manufacturers and Traders (SMMT).
These semiconductor chips are a key element in producing new vehicles where in 2021 the world was hit with this shortage. Manufacturers are increasing chip production , but the shortfall won’t be resolved immediately where the demand far out ways the supply.
Why is there a semi-conductor shortage
Most of the world’s semiconductor chips are made in Taiwan, but unfortunately, they’re experiencing a water shortage at the moment as no typhoons have hit the island in a long time. Water is needed to rinse each chip to remove debris from the manufacturing process to prevent the chips from becoming contaminated. The semiconductor chip shortage was only exacerbated by the Covid-19 global pandemic.
How the semi-conductor shortage affects the automotive industry
New Vehicles
Every new car is packed with thousands of these semiconductor chips, meaning production of new cars has slowed down massively, meaning longer wait times for a new car or less new cars in stock.
Many vehicle manufacturers, such as Volvo, Toyota and Ford have had to cease production temporarily due to this shortage of semiconductor chips. More specifically, the Ford F-150, Jeep Grand Cherokee and the Mercedes Benz C-Class.
Many people have felt the hit of these chip shortages through extended wait times for new cars – some wait times reaching 36 months. Or even some customers having their order cancelled unexpectedly due to the manufacturer being unable to produce the car due to chip shortages.
Second Hand Vehicles
As there are long wait times for new vehicles, many people are opting for second hand vehicles.
This has meant that the prices for second hand vehicles have increased massively.
As newer models of cars are being delayed, less older vehicles are entering the second-hand market.
So, second hand cars are more expensive, and there are less of them entering the market.
How AutoLyne provides a solution with vehicle supply
Here at AutoLyne, we may not be able to fix the semiconductor chip shortage, but we can provide you with a solution in the meantime. AutoLyne has many vehicles on offer from leasing and renting – cars and vans.
As many of us cannot go without a vehicle whilst we’re wating these extortionate wait times for a new vehicle, why not rent or lease a vehicle from us to tie you over in the meantime.
