autoevolution
 

Is This the End of the Chip Crisis? Top Carmaker Defies the Shortage

The consensus is that the chip shortage would continue this year, but Hyundai has just managed to prove to the world that increasing sales is still possible in this difficult market.
Hyundai reports growing sales in February 15 photos
Photo: Bogdan Popa/autoevolution/Hyundai
Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023Hyundai i10 and i10 N Line facelift for Europe 2023
The South Korean company recorded growing sales in February versus the same month a year earlier, and the chip shortage is no longer considered a major concern.

Hyundai shipped close to 328,000 vehicles last month, and this represents a 7.3 percent from a year earlier. The chip shortage that keeps disrupting the automotive market doesn’t seem to impact Hyundai, as its sales improved in almost every region.

In the domestic market, Hyundai sold a little over 65,000 vehicles. This means shipments in South Korea improved by 23 percent for Hyundai. Sales in international markets increased by 4.1 percent, to nearly 263,000 vehicles.

The first two months of the year also show encouraging numbers. Hyundai’s 2023 sales are already up 8.5 percent compared to the same period a year ago.

More importantly, the South Korean company no longer seems to consider the chip crunch a major concern for the production of cars. The company says the effects of the health crisis, the increasing interest rates, and the IRA act in the United States are currently its biggest challenges.

The opinions on whether the chip shortage is approaching the end or not seem to be mixed right now in the automotive market.

While Hyundai appears to be confident that the semiconductor problems might be over, others warn that the supply chain could still end up facing multiple disruptions this year.

General Motors is one of the biggest names that aren’t expecting the chip crunch to be resolved in full in 2023. The company’s CEO recently shared a production forecast, explaining that GM expects the global chip inventory to remain constrained this year. More concerning is that the carmaker expects the production challenges to continue even in 2024.

This isn’t necessarily surprising. Industry analysts warn that sales in the PC and phone markets could start gaining traction once again in the second half of the year. Based on historical trends, this typically happens during back-to-school campaigns in September and before the debut of the holiday season.

Growing demand for electronics could be bad news for carmakers, as the global chip inventory could face new challenges. Chipmakers tend to prioritize their biggest clients, and in the last three years, companies in the IT sector were most often favored in terms of chip shipments.

Carmakers are already trying to build up their own inventory, but some still expect the yearly target to be impacted by a potential shortage. Toyota says the chip crunch could eventually produce a 10 percent drop in its 2023 production output.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Bogdan Popa
Bogdan Popa profile photo

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.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories