Automotive - Spring Update 2022

Sector overview

The Automotive industry has experienced a challenging couple of years. Demand for vehicles remains strong but output has been stalled by the ongoing supply chain constraints. Last year several vehicle manufacturers were forced to temporarily shut down production due to global shortages of semi-conductors. Further production suspensions have been announced in recent weeks due to supply chain instability created by the crisis in Ukraine. Restrictions on the availability of new vehicles has resulted in increased demand for used vehicles and a rapid increase in their value. Despite facing showroom closures and a rapid shift to operating remotely, dealerships have reported record results on the back of strong consumer demand and price inflation. They do however acknowledge that uncertainty remains given the reduced availability of new vehicles and increasing inflationary pressures

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