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The semiconductor chip crisis caused the production of several factories to be paralyzed and more than 130 vehicles, in Brazil alone, were no longer sold in the automotive market.
The crisis of semiconductor chips, which is plaguing the whole world, is creating a different automotive market in Brazil. Lack of new cars, factories with production of vehicles completely paralyzed, long waiting lines and models that previously did not have a strong performance in sales and are now in great demand. In addition, prices for both new and used cars are rising.
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The impact of semiconductors on the automotive market
In factories, the lack of semiconductor chips decides which model will be manufactured and which will be left out, all this so that automakers do not have too many losses. Therefore, even the best-selling car can be “on the bench”.
So, the models with the highest added value go to the factory production line, as the loss is smaller with them, but even with strategic thoughts like this, nothing prevents manufacturers in the automotive market from losing huge volumes in sales in 2021.
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BCG Study on the Semiconductor Crisis
In foreign countries, there are brands with hundreds of thousands lost and that's just in one region. Brazil could lose up to 260 thousand cars this year due to the lack of semiconductors in factories. This is what the Boston Consulting Group (BCG) study shows, which used data from the IHS Markit consultancy.
A month of lost sales in Brazil is not even close to BCG's projection for the entire world. According to the study 5 to 7 million cars will disappear in 2021 and so far, 3,6 million are no longer produced.
Major powers in the automotive market suffer from the crisis
In North America, countries lost 1,2 million sales in the automotive market, because if there are no semiconductor chips, there is no production in factories. Europe lost 875 thousand and Asian countries, Japan and Korea, already add up to more than 770 thousand, that is, there are many cars that stopped circulating.
In Brazil, 130 cars were lost in the first half alone and in the rest of South America, another 30 were lost. It is estimated that sales in the automotive market will improve in the second quarter of next year. With the electronics sector delivering just 4% above pre-pandemic orders, the industry is losing out as it needs at least 15% chip ownership to gain the upper hand.
