Cars become scarce commodity due to microchip shortage

The waiting period has more than doubled, operating leasing company reports.

Carmakers in Slovakia have to halt car production due to a lack of microchips, too.Carmakers in Slovakia have to halt car production due to a lack of microchips, too. (Source: Courtesy of Volkswagen)

The average waiting period for new motor vehicles is getting longer due to the shortage of microchips. Several global carmakers have to repeatedly halt the production of cars and Slovak leasing operators have been negatively impacted, too.

“When a client ordered, for example, a Škoda Octavia model a year ago, he waited three to four months for it; today, it can take up to nine months,” said Michal Duška, sales director of the leasing operator Arval Slovakia, as cited in the press release.

He points out that if someone wants to buy a new car, they should think about it significantly in advance. This is because almost every car brand reports a shortage and the lack of supply for a premium car or a car with extraordinary features may last even longer.

Global chip shortage has reached carmakers' production lines in Slovakia Read more 

“For a BMW X7 with specific features, the current waiting periods are 12 to 18 months,” said Duška, adding that up to about 1,500 chips are needed to produce one car.

Duška says the Covid-19 pandemic and the enormous interest in electronic devices, as well as the blockade of the Suez Canal and a fire in a semiconductor factory in Japan, are behind the serious shortage of semiconductors. This has led to a reduction in the production of electric appliances and cars.

Operating lessors are preparing for the possibility that the shortage of new cars may continue next year. This is mainly due to the fact that carmakers do not have control of the situation as they rely mainly on Asian suppliers for chips.

Investmet Guide: Your key to understanding the Slovak business environment Read more 

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