Chip shortage worsens: Global vehicle prices are likely to rise sharply

Trending 2021-09-13

newsteamz_Chip shortage worsens: Global vehicle prices are likely to rise sharply
  • According to economists, the decision by manufacturing companies to reduce vehicle production by up to 60 percent has pushed up global prices for vehicles.

  • The companies plan to reduce the number of vehicles that are normally manufactured to a minimum and make more profit from the ones that are released.

  • The shortage of electronics chips and semiconductors is forcing automakers to reduce production.

According to economists, the decision by manufacturing companies to reduce vehicle production by up to 60 percent has pushed up global prices for vehicles. The companies plan to reduce the number of vehicles that are normally manufactured to a minimum and make more profit from the ones that are released.

The shortage of electronics chips and semiconductors is forcing automakers to reduce production. The lack of chips has put the auto industry in crisis. For this reason, auto giants Toyota and Mahindra are preparing to cut production.

The chip shortage is exacerbated by the new generation of vehicles that come with state-of-the-art systems. Chips are essential to enable the latest technology used in vehicles. The shortage of electronic chips, which have hit the automotive worldwide, has also hit the Indian auto market hard.

The use of mobile phones, tabs, and laptops increased as people stayed home during the lockdown. Following this, chipmakers turned their attention to the electronics device industry. This has left the automobile sector in limbo.

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