Chip shortage has led to 1.157 million vehicle production cuts worldwide

The chip shortage has led to a cumulative production cut of 1.157 million vehicles in the global auto market, according to a report released by AutoForecast Solutions on March 29.

Six automakers worldwide cut production by more than 65,000 vehicles due to the chip shortage on Monday, and the global auto production cut will be more than 2 million vehicles in 2021, according to the report.

Chinese EV maker Nio said on March 26 that the company would stop production for five working days due to a chip shortage, and that first-quarter delivery would be affected.

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Nio expects to deliver approximately 19,500 vehicles in the first quarter of 2021, down from the previously released outlook of 20,000 to 20,500 vehicles.

Nio is coordinating supply chain resources and the plant could resume production after five working days, but the long-term availability of chips remains to be seen, the report on nbd.com.cn said, citing Nio's source.

There are rumors that Hyundai will suspend production at its first Ulsan plant between April 5 and 13 due to a shortage of chips.

The affected plant produces 311,000 vehicles a year, including the Kona and Ioniq 5 electric cars.

Since March, car companies including Volvo, GM, Ford, Toyota, Honda, and Nissan said they suspended production plans at some plants due to a tight supply of semiconductors.

Since the chip shortage was exposed in December last year, the problem will not ease until at least the second half of the year, and it could take longer for some chips to resume supply, 21jingji.com cited an industry source as saying.

Starting in April, the Chinese auto market will enter the off-season, and with the gradual increase in chip supply, the chip shortage will be resolved by the end of the second quarter of this year, said Cui Dongshu, secretary-general of the China Passenger Car Association.