The impact of the chip shortage on automotive vehicle sales shows no sign of relenting and latest predictions by analysts IHS Markit indicate that recovery may not take effect until the autumn of 2022. 

Year-to-date IHS estimates the global industry is nearly 7.5 million units down on sales due the ongoing semiconductor shortage. The production disruptions have worsened as 2021 has progressed with the number of lost units rising. Some of the effects include: 

Sales in Ireland in September were down 22%. 

Sales in the UK stood at 214,000, the lowest month nine figure in 23 years in what is usually a bumper period due to plate changes.  

Volvo’s September sales fell 30% in September, due to what it described as a global component shortage, with its European sales worst hit. 

Sales in Spain were down 16% and sales in France were down 21%. 

However, despite these production drops most car makers have been able to offset declines in profit by increasing margins on cars sold and putting a firm concentration on the production of more profitable models. 

At present the effects of the global chip shortage are unlikely to work through until quarter three in 2022. This means new car sales in Ireland are likely to be very sluggish, even in the early months of 2022. 

With used car prices rising and supply short due to lack of new car transactions and the effects of Brexit, motorist are likely to keep their cars for longer opening up aftermarket service and repair possibilities.