New automobile gross sales to see large rebound in 2022 as chip provide improves, says analyst


Following a scarcity of laptop chips within the scarcity of latest automobiles in 2021, analysts anticipate improved chip provides to drive gross sales of latest automobiles in 2022. A mean gas-powered car has about 1,000 laptop chips, whereas electric-powered automobiles can have greater than twice the whole, resulting in low automobile provides out there and excessive costs with out ample inventory. Huh.

Phil Amsrud, an IHS Markit analyst who follows automotive chips, predicted that provide is not going to enhance instantly in 2022 and can possible enhance within the second half of the yr.

“We’re 2022 as an enchancment over 2021, however it’s not going to begin from January third or 4th,” he mentioned.

Nonetheless, specialists and analysts are not sure when chip provide will attain the extent earlier than the pandemic.

Cox Automotive predicts that new automobile gross sales within the US will enhance by greater than 1,000,000 this yr to just about 16 million. Cox’s govt analyst Michelle Krebs mentioned there are already indicators that the variety of autos out there at dealerships is rising, reaching a couple of million final month for the primary time since August.

However, it’s nonetheless 1.5 million fewer autos than in 2020 and a pair of.5 million fewer than in 2019.

Amsrud mentioned the elevated variety of new autos was made doable by automakers higher managing chip shortages. Many individuals are utilizing the chips out there with them for costly autos, which is prone to generate higher income.

And due to the provides and chips utilized in costly fashions, J.D. Energy says the common new car worth rose 20 % to $45,743 from a yr in the past, marking the primary time greater than $45,000 has been recorded.

Following a scarcity of laptop chips within the scarcity of latest automobiles in 2021, analysts anticipate improved chip provides to drive gross sales of latest automobiles in 2022. Above, the brand new Chevy on the market is seen at a Raymond Chevrolet on July 17, 2014 in Antioch, Illinois.
John Grace/Corbis by way of Getty Photos

Cox expects 2021 gross sales to be 14.9 million autos, up 2.5 % from 2020, the yr the pandemic hit the US and compelled the trade to close down for eight weeks. However within the 5 years earlier than the pandemic, gross sales averaged 17.3 million. Most automakers will launch December and full-year gross sales numbers on Tuesday.

Analysts and trade executives anticipate chip provides to regularly enhance this yr, with extra turning into out there within the second half. However it’s not sure when they may return to pre-pandemic ranges. The common gas-powered car has about 1,000 chips, and electrical autos can have greater than double that quantity.

Sedans actually aren’t driving the demand for brand spanking new autos. JD Energy reviews that SUVs and pickup vehicles accounted for a file 80.2 % of latest car gross sales in December.

Cox is predicting that Toyota will overtake Normal Motors within the US for the primary time in historical past. That is largely as a result of GM was hit arduous by the dearth of a chip, particularly at first of the yr.

In the meantime, Krebs is not positive GM will be capable to outsell Toyota this yr as a result of Toyota has managed chip shortages higher and delivered sooner.

The Related Press contributed to this report.

new car supply
A mean gas-powered car has about 1,000 laptop chips, whereas electric-powered automobiles can have greater than twice the whole. Above, new Chevy autos fill loads at Raymond Chevrolet in Antioch, Illinois, July 17, 2014.
John Grace/Corbis by way of Getty Photos



Supply hyperlink