Production halts and shortages have been a recurring phenomenon in the automotive industry. However, despite these disruptions, car sales continue to be in high demand. So, what drives this trend? One reason is that many consumers are delaying purchases until the situation improves or become more affordable.
Supply Chain Disruptions
The supply chain disruptions caused by the pandemic have led to a backlog of unsold vehicles, driving up inventory levels. This has resulted in higher prices for consumers and limited options for those who need cars quickly.
A further contributing factor is the shift towards electrification. Many car buyers are opting for electric or hybrid vehicles, which often come with higher upfront costs but potentially lower operating expenses over time. Additionally, governments have been promoting the adoption of electric vehicles as part of their sustainability initiatives, further driving demand.