Provide of automobiles more likely to turn out to be restricted because of chip scarcity, dealership warns | Enterprise Information


The availability of automobiles on the market is more likely to be restricted later this 12 months because of the worldwide scarcity of semiconductor chips, a number one motor dealership has warned.

Pendragon, which trades beneath manufacturers together with Evans Halshaw and Stratstone, is the newest to focus on how the scarcity may quickly filter via to consumer-facing companies.

It provides to comparable warnings from rivals Inchcape and Vertu Motors.

The firm has factories in Halewood, Solihull, Castle Bromwich and Wolverhampton
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JLR briefly suspended manufacturing earlier this 12 months because of a scarcity of components

In a buying and selling replace – wherein it highlighted robust gross sales in Could and June – Pendragon mentioned that “the extent of the influence of the well-publicised semi-conductor chip scarcity just isn’t but clear”.

However the group added: “It’s turning into more and more obvious there may be more likely to be some restriction of provide in the course of the second-half of FY21 [full-year 2021], with automobile order instances already being prolonged.”

Pendragon additionally highlighted provide constraints and pent-up demand within the used automotive market.

Automobile makers internationally from Jaguar Land Rover to Ford have been grappling with a scarcity of provide of semiconductor chips for months, prompting momentary shutdowns and decreased output.

Earlier this month, the UK’s Society for Motor Producers and Merchants (SMMT) mentioned the scarcity was hampering the business’s restoration from the coronavirus disaster, with UK automotive manufacturing in Could greater than 50% decrease than pre-pandemic ranges in 2019.

Now, consumer-facing automotive companies are beginning to really feel the pinch too.

Final week, one other automotive vendor, Vertu Motors, mentioned a tightening of auto provide because of previously-flagged part shortages was “more and more obvious”.

It added: “The anticipated time between order and supply of latest automobiles to clients for sure of the group’s franchises is now seeing elongation.”

Earlier this month, Inchcape highlighted uncertainty over “points relating to produce because of shortages of semi-conductors”.

One other rival, Lookers, mentioned in an replace this week – with out mentioning the chip scarcity – that restricted provide of latest and used automobiles had been “tightening in latest weeks”.



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