Global sales will increase but chip shortage still an issue

Ford took the biggest hit among automotive groups, with 2021 production down by 26 percent. Photo: Ford

Global auto sales will improve somewhat in 2022, analyst firm LMC Automotive said, but the semiconductor chip shortage isn’t going to improve any time soon.

Light vehicle sales are forecast to increase by 6 percent to 85 million, said LMC managing director Pete Kelly during the company’s annual sales and production forecast event. 

Gains will be spread evenly by region, LMC said. Europe sales will increase by 7 percent to 17.8 million; North America 6 percent to 18.7 million; China 5 percent to 26.6 million; South America 9 percent to 3.6 million; and the rest of Asia, including India, 7 percent to 15.3 million.  

Automakers will continue to struggle to build enough cars to satisfy demand through the first three quarters of this year, Kelly said. Production for 2022 is expected to be 84.9 million vehicles, a big increase from 75.8 million in 2021 – a figure that represents a cut of 10.7 million units from LMC’s earlier forecasts due to the chip shortage, he said.

Ford took the biggest hit among automotive groups, with 2021 production down by 26 percent, representing a loss of 1.26 million units, because of the chip shortage, LMC said. GM lost 21 percent of production, Volkswagen Group lost 13 percent, Stellantis 13 percent and Renault-Nissan 10 percent, says Europe Automotive News.

Compared to pre-pandemic levels in 2019, production will be down 12 percent in the first quarter, 5 percent in the second, and flat in the third quarter. A rebound will gather force in the fourth quarter, when it will rise by 4 percent compared with 2019, according to LMC.