DUBAI, UAE, Dec. 7, 2021 /PRNewswire/ -- The COVID-19 pandemic has had a devastating impact on businesses across the globe, but none more so than the automotive industry. As countries implemented social distancing and lockdowns, it forced manufacturers to halt production, which has had a huge impact on countless products.
One such product was the creation of tiny semiconductor chips. Made from silicon, these chips are essential in allowing computers, vehicles, smartphones, and appliances to function. However, unlike previous recessions when the number of orders decreased, the COVID-19 pandemic saw demand soar, which meant that when production restarted, the number of clients requiring semiconductor chips far outstripped supply.
A knock-on effect
Estimates by consulting firm Alix Partners suggest that there will be a shortfall of 7.7 million chips in 2021 alone. This is expected to cost the automotive industry an incredible $210 billion in revenue this year. However, it is not only the automotive manufacturers who are feeling the impact of this shortage.
As demand for new vehicles continues to rise, customers across the globe are finding that it is becoming increasingly more difficult to purchase the latest cars.
Changing trends
However, while the inability to purchase the latest vehicles has been a challenge, it has also resulted in a significant change in car buying trends. Customers are increasingly switching to the used car market, with dealerships across the UAE seeing an increase year-on-year in 2021.
Despite the difficulties the COVID-19 pandemic has posed, for used car market leaders, Alba Cars it has also provided a unique expansion opportunity. The luxury car dealer has seen record numbers of customers looking to purchase the many high-end, pre-owned cars from its extensive collection of brands, including the likes of Audi, BMW, Mercedes-Benz, Jaguar, and Maserati.
This demand has enabled the company to open two new branches in Dubai at Al Barsha and at Abu Dhabi's Marina Mall. These new facilities will allow Alba Cars to expand its reach further, reaching even more customers across the region, resulting in the company setting its all-time sales record in September 2021.
So while the computer chip shortage is causing issues for manufacturers around the world, it is giving companies such as Alba Cars the chance to seize a truly unique opportunity. With the crisis only set to worsen, there has never been a more attractive time for buyers looking for the very best pre-owned vehicles.
