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Chip Shortage Causes Massive New Car Registrations Drop, Weakest March Since 1998

The chip shortage showed no mercy when it comes to the automotive market, as it ended up causing huge production problems in pretty much every country out there.
This was the weakest March in terms of new car registrations in 24 years 6 photos
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Needless to say, the impacted production eventually affected new car sales, as the horror waiting times are now exceeding 1 year for some brands and car models.

New data shared by the Society of Motor Manufacturers and Traders (SMMT) perfectly highlights the nightmare the lack of semiconductors has created in the car industry.

In the United Kingdom, the number of new car registrations fell by no less than 14.3 percent last month, thus making it the weakest March since 1998. In other words, the nearly 243,500 new cars registered in the United Kingdom in March 2022 actually represent the lowest level of the industry in no less than 24 years.

The only good news for the United Kingdom car sector is the number of EVs registered in the region. SMMT says the number increased by no less than 78.7 percent to reach 39,315 units.

Obviously, the chip shortage will continue to wreak havoc in the automotive industry, and despite forecasts that the supply could improve in the second half of the year, carmakers no longer seem confident this is even possible.

The most pessimistic forecasts indicate the chip shortage may not be over sooner than 2024 or even 2025, though recent research suggests the semiconductor inventory aimed at the automotive market could show signs of recovery in the coming quarters.

In the meantime, however, carmakers out there have nothing else to do than to continue implementing a set of measures supposed to help limit the disruptions caused by the lack of chips. Just earlier this week, Ford announced that it’s suspending the production of the Mustang due to the lack of chips, with General Motors also previously halting the operations at Fort Wayne because of the same reason.

 
 
 
 
 

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