Car industry may need deals with chipmakers to counter shortage

The auto industry has struggled to source chips as semiconductor makers have allocated more capacity to consumer products after the pandemic prompted
...
A premium electric vehicle with semi-autonomous driving capabilities will pack chips worth roughly $7,000 by 2025, up from about $3,000 for a combustion-engine car in 2019. (Bloomberg)
A premium electric vehicle with semi-autonomous driving capabilities will pack chips worth roughly $7,000 by 2025, up from about $3,000 for a combustion-engine car in 2019.

Automakers should consider strategic partnerships with chipmakers to improve how they source semiconductors as their use in cars balloons, Roland Berger said.

A premium electric vehicle with semi-autonomous driving capabilities will pack chips worth roughly $7,000 by 2025, up from about $3,000 for a combustion-engine car in 2019, the consultancy said in a study released Tuesday.

Also check these Cars

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
View Details
Porsche 911 Gt3 (HT Auto photo)
Engine Icon3996.0 cc FuelType IconPetrol
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
View Details
Lexus Nx (HT Auto photo)
Engine Icon2494.0 cc FuelType IconMultiple
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
Engine Icon6750 cc FuelType IconPetrol
₹ 6.95 - 7.95 Cr
View Details
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.30 Cr
Compare

Competition from consumer-electronics companies that buy far more semiconductors will continue to test auto manufacturers’ supply-chain management capabilities, it said.

“We expect the current chip shortage to last beyond 2021 given the current supply and demand imbalance and the lead time to increase capacity," Roland Berger said. Carmakers should overhaul relationships with suppliers and weigh strategic partnerships including “equity relations."

The auto industry has struggled to source chips as semiconductor makers have allocated more capacity to consumer products after the pandemic prompted a surge in orders for smartphones, TVs and computers.

The shortage and a winter storm that devastated Texas in February probably cost carmakers including Volkswagen AG and General Motors Co. production of about 1.3 million vehicles in the first quarter, IHS Markit said last month.

First Published Date: 14 Apr 2021, 09:05 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.