With the arrival of the semiconductor chip crisis in the Brazilian market, semi-new cars are the new darlings of consumers, while entry-level cars are being devalued with a drop greater than 10% in sales

The semiconductor chip crisis is already impacting the stock of semi-new cars in Campo Grande. The crisis has been favoring those who are selling their semi-new or used cars, which are being overvalued due to the increase in demand, since entry-level cars – new – are increasingly expensive. Prices rise every month and there is no forecast for values ​​to remain stable, as factories still face shortages and inflation of semiconductor chips.

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The impact of the semiconductor chip crisis on entry-level cars

Cars and more cars are waiting for these components to leave the factories. This is one of the main reasons for the absence of entry-level cars at Brazilian dealerships, and those who buy a new one wait months for the vehicle to arrive.

Semiconductor chips are responsible for modern security, air-conditioning, entertainment, broadcasting, driver assistance and lighting systems. With the pandemic, Asian manufacturers of this product had no buyers, as automakers were paralyzing production, so they left for another market.

Currently, the crisis of semiconductor chips makes the product scarcer and more expensive. Therefore, automakers choose to use the most sophisticated components only in vehicles that already have a high price, so that they can have a higher profit margin.

• Read also: Semiconductors: understand their importance to the global microchip market

Used car sales rise by 2,7%

Last month, 2.196 cars and light commercial vehicles were sold in Mato Grosso do Sul, which means a decline of 11,27% compared to the same month last year, when 2.475 vehicles of this type were sold. On the other hand, the sale of semi-new and used cars grew by 2,7% in the same period, from 11.411 to 11.714, according to the National Federation of Automotive Vehicle Dealers Association (Fenauto).

Mateus Stheefano, sales consultant at one of the Campo Grande dealerships, states that, “since the semiconductor chip crisis, entry-level cars no longer have some options that set them apart. “

Prices will continue to rise

The trend is for entry-level car prices to continue rising month after month due to the semiconductor chip crisis. The used car garage at Giovel Automóveis, which previously had around 60 cars, currently has no more than 14, according to the owner, Ronaldo Ribeiro.

According to the owner, new consumers offer semi-new vehicles as a down payment when purchasing, but with the decline and sale of entry-level vehicles, the garage is struggling to replenish stock. According to Ribeiro, it is possible that prices will normalize around next year.