Monday, June 5, 2023

INA Meets Semiconductor Shortage This Year

Later this year, it is expected that the automotive industry will see “light at the end of the tunnel” by achieving normalization in the supply of semiconductors that still pose problems for automakers and cause delays. One month for delivery to consumers.

Alberto Bustamante, general director of the National Auto Parts Industry (INA), pointed out that by the first quarter of 2023 the availability of chips is expected to improve by 70% compared to the same period last year, for which he estimated that in the coming months And maximum full recovery will happen in 2024.

They said they stopped building 48,505 vehicles during the first quarter because of a shortage of chips needed to manufacture cars or auto parts in North America. Of this number, Mexico discontinued production of 26,112 vehicles, representing 54% of the impact in the region.

In 2020, the automotive industry faced a semiconductor supply crisis, which severely affected the production of vehicles and auto parts after the pandemic shut down supply chains, which subsequently led to increased logistics costs and delivery delays Hui.

In some cases, it used to take up to a year for automotive companies to deliver a car, and the time was getting shorter. Presently it is estimated that there has been a significant improvement in delivery of vehicles sold by distributors and has been reduced from 15 to 30 days.

As early as 2023, the automotive industry presents double-digit growth in production, exports and sales as a sign of recovery in semiconductors. assembly adds up to 10.6%; Exports accumulated 8% and sales 22.5% in the first quarter of the year.

The improvement in semiconductors is remarkable and by the end of this year there will be no semiconductor problem. And we will see over the course of months how the impact will be mitigated to reach normality by the end of 2023 and beginning of 2024”, Bustamante explained.

At the end of 2021, North America was the region that presented the biggest impact due to the shortage of semiconductors for vehicle assembly, which implied it to stop production of 2,472,038 units. Of that amount, the United States had 1.5 million units; 603,329 cars in Mexico and 382,961 vehicles in Canada.

The director of INA confirmed that “Globally we have seen that the availability of semiconductors has increased by 70% compared to previous years, which indicates that we already have more semiconductor suppliers in North America.”

From January to March this year, 3.8 million light vehicles have been produced in North America, with a volume impact of 48,505 units, representing, he said, just 1.3% of the region’s manufacturing.

Automotive brands noted that their parent companies choose to supply plants with the greatest demand for vehicles, which is why the impact is much smaller in the United States, with 23% due to a shortage of chips, similar to Canada, while In Mexico it is still 54 percent.

Nation World News Desk
Nation World News Desk
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