Covid Price Increases On New Cars And Supply Chain Shortages
The COVID-19 pandemic has caused a significant disruption to the global supply chain, and the automotive industry has been no exception. As a result, new car prices have been on the rise in recent months.
Shortage Of Chips
One major factor contributing to the increase in car prices is the shortage of micro chips. These tiny chips are used in a wide range of electronic components found in cars, including engine control units, infotainment systems, and driver assist technologies. As a result, car manufacturers are facing a shortage of these vital components, and are forced to pay more for them.
Disruption In Global Trade
Another factor contributing to the rise in car prices is the shortage of shipping containers. The pandemic has led to a significant disruption in global trade, and shipping containers have become scarce and expensive. This has made it more costly for car manufacturers to transport their products around the world, and they are passing on these costs to consumers.
Supply Chain Disruptions
In addition to these supply chain disruptions, the pandemic has also led to increased demand for cars, as people are looking for more socially distant forms of transportation. This increased demand is also contributing to the rise in prices.
Post COVID 19 Pandemic And The Auto Industry
Overall, the COVID-19 pandemic has had a significant impact on the automotive industry, and consumers are feeling the effects in the form of higher prices for new cars. While the situation is likely to improve as the pandemic has been brought under control and as supply chains recover, it’s important for consumers to be aware of the reasons for the price increases, and to factor them into their purchasing decisions.