The Covid-19 pandemic has hit every industry in the world. The semiconductors industry is one such example. The industry has been suffering from high demand and low supply problems since late 2020. With most people staying at home, the demand for computers, gaming consoles and other electronics has gone up significantly. The semiconductor manufacturers just couldn’t cope with this increased demand and hence the market has fallen short of them. Cars too use a host of electronics nowadays, so semiconductors are essential for the automotive industry. Here’s how the shortage of semiconductors has affected the Used Car market.
-
Manufacturing Slow-Down
Volkswagen Chakan Manufacturing Facility
Automakers are facing a major slow-down in the manufacturing of their products due to this shortage in semiconductors. The industry is not being able to supply to potential consumers on time. Most cars nowadays are facing huge waiting periods as well.
Download the GoMechanic app now!
-
Increased demand for cars
With the onset of the pandemic, many people are hesitant to use public transporting means. This has resulted in an increase in the demand for new cars. The semiconductor shortage, along with increased demand has caused a major delay in the new vehicle deliveries.
Also read- Cars with highest waiting periods
-
Impact on the Used Car Market
These two factors have forced a lot of consumers to navigate towards the used car market. Increased demand for second-hand cars has resulted in an upwards trend in prices. Dealers say that this surge will remain until the Global Semiconductor crisis isn’t solved.
