Worldwide automobile production to witness 9.3% drop in 2022: Report

• Global vehicle output is likely to be 75.8 million and 82.6 million vehicles in 2021 and 2022 respectively.
• The global automobile market is projected to witness a 1.1% fall in manufacturing in 2023.

As per market experts, global car production is likely to decrease by 9.3% to approximately 8.4 million units in 2022. This development comes after several automakers including Toyota Motors Corporation announced a production cut for 2021 due to the ongoing semiconductor crisis across the globe.

The global automotive sector has been going through a tough phase since the onset of the COVID-19 pandemic back in 2019 owing to the resulting lockdowns and rising cases in key markets.

During the first three quarters of 2021, the global auto market had to cut production by millions of units due to falling demand, semiconductor chip shortage, and implementation of frequent lockdowns. Experts believe that the 2022 forecast is by far the largest single adjustment in the car production outlook since the last 9 months.

The global vehicle output is expected to be 75.8 million and 82.6 million vehicles in 2021 and 2022 respectively, according to some market analysts. Meanwhile, the global automobile market is projected to witness a 1.1% reduction in manufacturing in 2023.

Although this business space has been recovering slowly from the chip crisis, a sharp rise in COVID-19 cases in Malaysia, a hotspot for chip testing and packaging, has severely affected the recovery process. Even the Malaysian government had to implement a nationwide lockdown which prevented the business sphere from returning to normalcy.

While the production cuts will result in a rise in the number of frustrated buyers, the move might encourage automotive companies to rethink their business models and consider manufacturing better, fewer, and greener cars, experts claimed.

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