Planning to buy a new car? Better start saving more money. Know why

The global auto industry is facing a steep rise in metal prices, which is expected to hammer the vehicle prices hard. The crisis is looming ahead for the carmakers in the wake of the Russia-Ukraine conflict. The Russian invasion of Ukraine is ramping up the price of metals that are used in cars. These include aluminium in the bodywork to palladium in catalytic converters, to high-grade nickel in electric vehicle batteries.

Besides the soaring metal prices, supply chain disruption among others too is impacting the auto industry at large. The Ukraine crisis is resulting in soaring prices for crude oil, which would result in a higher price for petrol and diesel. Apart from that, the chip crisis too is likely to witness a second wave due to the Ukraine crisis.

Ukraine is a major producer of neon, which is used significantly for making microchips. With the war going on in the country, the production and supply of neon have been impacted severely.

Stellantis CEO Carlos Tavares said that the current situation with escalate the cost of raw materials and energy, which will put more pressure on the auto industry's business. Expect this pressure to be passed on to the consumers, which means they will have to buy vehicles at a significantly higher price.

Aluminium and palladium both hit record highs on Monday. Nickel, which is used to make stainless steel for the automakers, crossed the $100,000-a-tonne level for the first time ever on Tuesday.

The global auto industry has been reeling under pressure due to the Covid-19 pandemic and related disruptions. The Ukraine crisis has started at a time when the auto industry was reviving from the Covid crisis.