The market for armored vehicles in Brazil and other countries suffer from the lack of semiconductor microchips, the automotive sector and dealerships are having supply difficulties

From electronics to armored vehicles: understand why the various sectors of industry, utilities and the automotive sector have suffered from the impact of the crisis of the lack of semiconductor microchips worldwide.

The global crisis in the production of microchips, known as semiconductors, has affected several sectors of the industry, which are facing difficulties in acquiring the product. The automotive sector of armored vehicles and dealerships were some of them, in addition to electronics companies, mainly those that manufacture tablets, computers and cell phones. 

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In Brazil, the consequence for the production of armored vehicles has been great. Despite the growing demand for armored vehicles, the scarcity of inputs for the production of this type of car has negatively impacted the sector.

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Autobunkers Defense is a business group with 20 years of market experience, which has become a reference in the country in the area of ​​automotive armoring, in the automotive sector. The group already has more than 15 armored vehicles sold and 7 shields built. Autobunkers Defense has all the certificates required by the Brazilian Army, which is responsible for controlling vehicle armor, as well as for handling other controlled products, such as explosives, weapons, ammunition and ballistic materials.

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According to Olavo Ehmke, managing partner of the business group Autobunkers Defense, the lack of semiconductor microchips used in the manufacture of armored vehicles is affecting production. “It has harmed the chain as a whole. From the popular vehicle devoid of accessories to the most complex ones. The lack of these products is due to the use of semiconductors for the production of televisions, cell phones, computers and everything that the population mobilized to buy during the pandemic ”, he reveals.

Semiconductors in the automotive industry and the importance for the production of armored vehicles

The automobile industry has definitely entered the era of digitalization. Along with this, there was a need to reduce pollution, generate more comfort and autonomy, thus creating “more monitored” and protected vehicles. In this way, the semiconductor micro chips, in this case, are key pieces for this digitalization process.

The Director of Autobunkers Defense, points out that sophisticated armored vehicles are the ones that most suffer from a lack of inputs. He points out that “The more sophisticated the car is, the more semiconductor michochips it needs. There are several equipment and accessories, making it more difficult for it to be completed on the production line. And it is exactly these cars that are lacking in the market, sophisticated vehicles over five hundred thousand to one million reais. They are difficult to find and there is no delivery schedule for these cars, ”he reports.

He also points out that these problems have caused setbacks not only for consumers, but also for the dealerships that manufacture and sell zero kilometer vehicles. “This brings a direct threat to the survival of this type of dealership network, which has even been the subject of legal claims for compensation for damages due to the impossibility of offering zero vehicles that the network needs. There is no way to stay in the market selling less than 10% of what the company proposed in the business model”, he declares.

Still according to Ehmke, Autobunkers has several customers in a queue for armored vehicles. “There are several requests and as these cars arrive, we will produce the armor and make it available to the market”, concludes the executive.

The National Association of Motor Vehicle Manufacturers (Anfavea) made a projection at the beginning of the month on the production of automakers installed in the country. According to them, automakers should produce a smaller volume of vehicles in December than in November. Dealerships had the worst November in sales since 2021 in 2005.