Global car production could be cut by 9.3% at 8.4 million units in 2022: Report
The global auto industry has been going through a rough phase for quite some time. Initially, it was an economic meltdown. Then the Covid-19 pandemic hammered the industry hard. The latest is supply chain disruption in the form of a microchip crisis. Research firm IHS Markit has now forecasted the global car production could be slashed by 9.3% or around 8.4 million units in 2022.
The research firm also claims that in 2021, the global car industry could reduce production by 6.2% or around 5 million vehicles. The forecasts come right after several automakers including Toyota have announced a production cut for this year, due to the chip crisis.
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The 2022 forecast by the firm comes as the largest single adjustment to the car production outlook in the last nine months. In the first three quarters of 2021, the auto industry had to cut production of millions of units due to the frequent lockdowns, slumping demand and of course chip shortage.
As the firm claims, the outlook for the fourth quarter too will remain dampened. Not only 2021 or 2022, but IHS Markit has also reduced its 2023 forecast as well. The firm claims that in 2023, the global auto industry will see a reduced production of 1.1% or slightly over one million vehicles.
According to its forecast, this year, the global vehicle output would be 75.8 million vehicles and 82.6 million in 2022. These forecasts clearly reflect the barrage of challenges the global automobile industry has been facing.
The auto industry was recovering slowly from the chip crisis a few months back. However, a fresh surge in Covid-19 cases in Malaysia, a hot spot for chip packaging and testing impacted the recovery process. The government had to implement a lockdown that prevented the industry from returning to normalcy until late October.