Fitch Solutions says Asia’s vehicle sales will enter 2022 in a weaker posture because the new Covid-19 variant (Omicron) and the associated restrictions may impact the ability of consumers to buy vehicles.
According to the firm in. a report published today, Asia’s car sales will rise by 12.8% in 2021, reaching just over 44 million units, up from 41.5 million units in 2019.
Fitch Solutions anticipates that automobile sales in the Asia area will continue to recover in 2022. The entire performance of the region’s vehicle sales markets, on the other hand, will be determined by how efficiently the chip shortage is addressed.
“We estimate a 5% increase in total car sales in Asia, with considerable upside risk. In terms of our 2021 prediction, we anticipate that passenger vehicle sales will grow by 13.5 percent, while commercial vehicle sales will grow by 10.1 percent ” it says.
“The global semiconductor (chip) shortage is likely to worsen over the next few months (particularly in September and October of 2021) before it starts improving into 2022. We believe that the spread of Covid-19 and related public health measures and restrictions will remain major disruptors to chip production in Asia, thereby compounding the risks in the complex chip supply chains.
“We still only expect the shortages to noticeably ease from mid-2022 onwards as new chip production capacity starts to come online. However, there will still be some supply chain risks and concomitant shortages until mid-2023,” it says.
