Global Car Market Contracts As Auto Sales Slump Amid Chip Shortage, Covid Delta Variant
The global vehicle market suffered a decline in July, as the ongoing semiconductor shortage and worsening delta variant weighed down on sales growth.
According to a report published by automotive industry forecasting firm LMC Automotive, there were approximately 6,463 million light vehicles sold globally last month, marking a 6.3% decline from the 6,899 units sold in July 2020. However, compared to the first six months of 2021, sales of new light vehicles around the world grew 22% year-over-year.
“The semiconductor shortage held back the post-lockdown recovery of vehicle sales in Europe, while its impact on inventories in the US meant average transaction prices soared,” the report explained. LMC Automotive analysts added that the worsening spread of the delta variant may particularly deteriorate the sales outlook in China, were new light vehicle sales slumped almost 10% in July compared to year-ago levels.
Meanwhile, sales of new vehicles in the US grew by 3.2% to almost 1,278 units in July, despite being impacted by low inventories during the summer.
Information for this briefing was found via LMC Automotive. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
