Global chip shortage to last until 2023

According to car industry analysts, the global chip shortage is set to last till 2023 due to the pandemic situation. Moreover, since the latest automobiles are dependent on the chips this may affect car production as well.

This report was based on a forecast coming from IHS Markit, a globally recognized information provider residing in the UK, who mentioned that the car industry will have difficulties in terms of recovering from the recent losses. this means that the car industry will face losses in terms of billions of dollars through the year 2022 which will lead to cars becoming more expensive for the consumers.

However, if the chip production sector reaches stability around the final quarter of the 2022 calendar year then car production can increase leading to new vehicles becoming more affordable. However, this issue has a heavy toll on some automobile companies as some are even planning to wrap up their operations.

Presently, vehicle production is set to decline by 6.4 percent which means that there will be around 5 million fewer vehicles globally. This percentage is expected to rise even further.