The chip shortage may last until the end of 2023 or early 2024

According to foreign media reports, according to the latest data from the automotive industry data forecasting company AutoForecast Solutions (hereinafter referred to as "AFS"), as of February 12, due to chip shortages, the global automotive market has reduced production of approximately 349,900 vehicles this year.

Last week alone, North America reduced production by approximately 33,900 vehicles due to core shortages, bringing the region's cumulative production reduction to 89,200 vehicles. There are no new production cuts in other regions such as Asia and Europe.

The latest production reduction data compiled by AFS show that although chip supply has improved, shortages still persist. AFS said that the chip shortage has entered its third year. By the end of this year, the cumulative production reduction in the global automobile market due to the chip shortage is expected to climb to approximately 2.81 million vehicles.

Recently, Toyota lowered its production target for the current fiscal year (April 2022 to March 2023) by about 1% to about 9.1 million vehicles. In November last year, Toyota lowered its production forecast for this fiscal year to 9.2 million vehicles from 9.7 million vehicles due to chip shortages. In addition, Toyota also expected in January to produce 10.6 million vehicles in 2023, but if it cannot purchase enough parts, production may drop by 10%.

Many auto industry insiders believe that chip shortages will last throughout 2023. However, automakers such as Honda Motor Co. have recently said they believe the chip shortage is bottoming out but expect it to continue until the end of 2023 or early 2024.