Global inflation is rising, and electronic chip production is falling, posing a danger to the auto sector
According to analysts specialising in the automotive industry, the production gap is growing due to a severe lack of semiconductors and other electrical chips.
In prior public statements, Albert Wass, a partner in the management consulting firm "Boston Consulting," told the German daily "Welt am Sonntag," "We assume it will not be possible to build between 10 and 11 million automobiles this year."
The drop of "electronic chips" impacted the auto sector for several months, and Osama Abul-Magd, the head of the Egyptian Automobile Manufacturers Association, predicted that the problem would last until 2022.
According to a storey in Der Spiegel, the consulting firm PricewaterhouseCoopers estimates that up to 11 million fewer automobiles will be produced and sold globally by the end of the year than the previous year.
"The issues deteriorated in the third quarter and will continue into next year," said Felix Koehnert, PwC's automotive division leader.
According to a recent report by consultant Alex Partners, the "car industry" will lose a total of $210 billion in revenue this year owing to semiconductor and electronic chip shortages, up from $110 billion in May.
According to the publication "Alex Partners," the auto industry's output deficit this year is forecast to exceed 7.7 million cars, nearly double the number previously estimated.
Despite the Corona pandemic, Ihab Al-Muslimi, Vice President of the Cairo Chamber of Commerce's Automotive Division, has stated that in 2020, 230 thousand cars of all types, whether owners, transport, or others, will be sold in the Egyptian market.
According to Al-Muslimi, the Egyptian market is expected to sell up to 300,000 cars in 2021, which is an unprecedented number in light of the car replacement initiative, which is estimated to cost around 70,000 cars, but also in light of a lack of "electronic chips" for cars, the Corona virus crisis, and a lack of supply. The sale of roughly 230 units is expected to close in 2021, which is similar to the prior year.
According to Al-Muslimi, Egypt's revolution in the development of new towns and the network of new roads and bridges supports annual sales of 500,000 automobiles, and there is a growing demand for cars in Egypt, but supply is limited due to Corona and the electronic chip problem.