The impact of the global shortage of semiconductors on the automotive industry is gathering momentum, with manufacturers not only scrambling to adjust production, but shortages of finished vehicle inventory now seriously impacting on demand fulfilment. OEMs are unable to replenish stock at dealers and customers may be avoiding showrooms because of rising vehicle prices, either putting off purchases or shifting to the used vehicle market.

Meanwhile, there is no immediate relief expected from chip manufacturers, even as many expad production capacity specifically for automotive customers. The lead time for this supply to reach the market still appears to be more than six months or longer away.