Supply disruption dents Q1 2021 outlook but recovery to resume from Q2
The near-term outlook is clouded by the global shortage of semiconductors for auto parts. This shortage is forcing major automakers to slash vehicle production in Q1 2021.
What you will learn:
We expect most of the temporary disruption to be felt in Q1, with an estimated 1 million-unit hit to global light vehicle production in this period and some spillover into Q2 possible in Europe and North America.
Beyond this temporary supply disruption, the outlook for the global automotive market is solid, reflected by the rapid recovery in automotive sales and production since the second half of 2020, with the level of demand expected to be broadly sustained through 2021.
By fuel type, 2021 looks to be the year when hybrid and electric vehicles (xEV) break into the mainstream.