Horror Chip Shortage Effects as Nearly Half of Car Buyers Ready to Delay Purchase

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Everybody knows the global chip shortage has wreaked havoc in pretty much all the industries out there, but as far as the car sector is concerned, more and more bad news just keeps coming in every day.
This time, it’s a survey conducted by Kelley Blue Book (embedded in the PDF section below) the one that’s likely to upset carmakers, as nearly half of those currently in the market looking to buy a new vehicle are ready to delay the purchase because of the global chip shortage.

In other words, just because auto manufacturers don’t have enough chips to install on their cars, and it therefore takes longer before a vehicle is shipped to the customer or some systems may no longer be available, 48 percent of the buyers are likely to postpone the acquisition until a later time.

And this is bad news for several reasons, with the research showing that 25 percent of those who said they want a car right here, right now, are ready to switch to another brand if their favorite carmaker is having a hard time shipping the car they want on time.

Only 19 percent of them claim they would change the vehicle category, such as buying an SUV instead of a sedan, if the company can ship it faster.

Clearly, this is anything but good news for carmakers, especially as the global chip shortage is unlikely to come to an end too soon. Several companies are already anticipating a difficult 2022, with the lack of semiconductors expected to continue into 2023, though some signs of recovery should already be recorded in approximately 12 months.

But at the end of the day, there’s clearly no easy way to address the shortage, other than changing the business model, which some carmakers obviously aren’t willing to do, and investing in chip manufacturing.

Market research firm says that accelerating the production of semiconductors could end up becoming a problem in the long term as well, with 2023 expected to come with an oversupply of chips once the output is aligned with the demand.
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 Download: Kelley Blue Book research on chip shortage effects (PDF)

About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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