The coronavirus pandemic, the chip manufacturing crisis, the breakdown of supply chains and Russia's military aggression in Ukraine have significantly disrupted the usual world picture for automakers. The never-ending challenges in this industry are most vividly reflected in the timelines - many desired new models can be ordered and received in different years. However, some manufacturers manage to maneuver quite successfully in production and supply conditions that resemble a minefield, so their cars arrive in Lithuania without much delay.
The sales figures reveal the situation of the producers who have best managed the production and supply processes. According to the preliminary data of "AutoTyrimų", in March, representatives of Toyota sold the most new cars in Lithuania, Volkswagen was in second place, and Kia climbed to third place.
The sharp jump of the latter brand was due to the steady supply of the most popular models, including the newly launched new generation compact SUV Sportage, which accounted for the lion's share of sales in March.
Dalis prepared better
Vitoldas Milius, publisher of Auto Bild Lietuva magazine, says that sometimes it is even difficult to distinguish which specific problem drivers have to wait for one or another new car. Every year manufacturers hope to eventually reach the demand bar, but the baton of problems is taken over by something else. The resulting disruption causes new chain reactions and further strangles production capacity.
"The lack of chips is still a major obstacle even now, and the war in Ukraine will definitely not improve the overall situation," says V. Milius.
According to the specialist, basically all manufacturers were affected by the supply disruptions, but some of them were better prepared for surprises, and some were able to quickly react to the changing situation and make successful decisions.
"For example, more expensive or more luxurious models usually bring more profit to manufacturers, so when it comes to choosing whether to put a deficit chip in a cheap car or an expensive car, the latter wins." Those models continue to drive because they make more money," the journalist observes.
Why did many people run out of chips? According to V. Miliaus, after the start of the pandemic, some manufacturers began to worry about the mood of the buyers and "hedging" ordered a smaller amount of chips. Then the suppliers of these components needed to distribute their production to other channels, that is, companies that manufacture televisions, computers or other electronic devices.
However, after it became clear that the sales of new cars quickly returned to the old tracks, the manufacturers, having reduced their orders, realized that they could no longer restore the desired supply of component parts, because their suppliers were no longer able to produce them. Therefore, producers who perceived this situation differently and prepared for it differently had different positions when the disruptions started.
"Toyota, for example, produces many more parts than other brands, so in this situation it worked to their advantage," explains V. Milius.
Some are delayed, some are produced faster
Karolis Judzentavičius, the sales representative of the company selling Kia cars, says that the South Korean manufacturer's supply changes were felt a little later than many other brands, around the second half of 2021. However, their effect was not so significant.
Kia supplies our market with cars made in Slovakia and South Korea. The most popular versions of Ceed and Sportage are assembled in Slovakia, while all other models come from South Korea. The usual deadline for the fulfillment of a factory order from Slovakia is about 3.5 months, and from factories in South Korea - about 6.5 months, but due to the current situation, this deadline has been extended for some models, while for others, on the contrary, it has been shortened," the interviewer reveals.
According to him, the more complex the car and the more its equipment, the more chips need to be installed in it. This increases the likelihood that the delivery of such a model may take some time. Here, models with manual transmissions usually reach their buyers faster than cars with automatic transmissions.
As the delivery of some cars started to get a little stuck, some models arrived just as quickly. According to K. Judzentavičius, this happens when the production of one model stops due to a lack of components, but the assembly line remains free for other popular cars that have enough parts.
"Delivery of accelerator part electric cars from South Korea. In addition, when supplying cars to the European market, electric cars are considered a priority due to the need to reduce CO2 pollution, so when the slightest opportunity arises, their collection is accelerated," explains the specialist.
Statistics reflect his words. For example, in 2022 in February, the best-selling new electric car in Lithuania was the Kia e-Niro. According to the specialist, it is the sales figures that are quite illustrative of how manufacturers and importers are managing to overcome supply challenges.
"Globally, Kia was well prepared for this situation, which is evident from the numbers. The main models that have been focused on arrive without major disruptions, which is reflected in the sales figures," the interviewer notes.
"Kia" sold 41 percent of its vehicles in Lithuania last year. (1451 units) cars more than in 2020 and became the second most popular brand of Asian car manufacturers. In the C-segment, Kia Ceed took third place in terms of sales (468 units), behind only Toyota Corolla and Skoda Octavia, but ahead of players such as Peugeot 308, Ford Focus or even Volkswagen Golf. . The previous generation Kia Sportage did 67 percent. jump and became the fourth most popular compact SUV.
Specialists agree that the situation will undoubtedly be corrected by the war in Ukraine, because not a single manufacturer is related to both the resources extracted in this country or the functioning parts factories, as well as the supply of materials from the aggressor Russia.
"For example, Ukraine is one of the largest producers and exporters of neon in the world. Neon gas is used in the production of chips, so without it, everything goes awry. Therefore, it is now difficult to provide more accurate supply forecasts," says K. Judzentavičius.
According to Lauryns Boguševičius, the founder of the car trading company "Deals on Wheels", the problem of chips has not disappeared yet, and Russia's military aggression in Ukraine will only deepen the existing ones and create new problems.
"For example, even when the pandemic hit, Tesla was in the safest position because they made almost everything themselves, including the chips. However, the production of chips requires metals and nickel, which is mainly mined in Russia and Ukraine. Russia is also one of the largest producers of aluminum, so this wave will affect the capacities of all brands, without singling out any one," L. Boguševičius points out.
According to him, the sharply rising oil and gas prices will also affect the final pricing of producers, as many factories are also dependent on the prices of energy raw materials.
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