Jaguar Land Rover (JLR) is the latest carmaker to warn of a sales drop due to the semiconductor shortage. JLR sounded alarms that deliveries will be 50% worse in the second quarter than initially thought. The shortage of automotive chips that began in December as a result of the soaring consumer demand for personal devices amid the lockdowns continues throughout 2021 and is expected to persist till next year too. The car industry might face a loss of $110bn in sales from the car industry, according to the predictions of consulting company AlixPartners. “The chip shortage is presently very dynamic and difficult to forecast…We expect some level of shortages will continue through to the end of the year and beyond”, JLR said.
Nissan Motor, Hyundai Motor and Volkswagen are amongst others that warned of shrinking inventory due to the semiconductor shortage, which will continue squeezing sales through the summer 2021. In the US auto sales slowed to 17.1mn in May and 15.7mn in June compared to the near-record annual pace of 18.6mn vehicles in April, based on estimates of Emmanuel Rosner, analyst at Deutsche Bank.
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