Car stocks are falling and shortages persist
Automakers are struggling to maintain inventory due to the global chip shortage, and the struggle to keep cars in stock is expected to continue.
According to an SK Securities report released on September 23 and based on research by MarkLines, Hyundai Motors had 47,000 cars in its inventory in the United States as of August. This is a drop of 13% on a month compared to the stock of 54,000 cars in July.
Inventory is expected to last 19 days for the company, which is less than a third of a healthy inventory. Businesses should have enough cars for 60 to 90 days.
Kia had 58,000 cars in its inventory in the United States, which is expected to last 27 days.
âMajor car models are low in stock, like the Tucson [9 days of supply] and the fence [11 days of supply]”said Kwon Soon-woo, analyst at SK Securities.” Passenger car stock [23 days of supply] are lower than SUVs, CUVs and vans, with 16 days of supply.
Kwon added that the stock of the Kia Forte K3 and K5 declined from July, while those of SUVs such as the Telluride and Sportage increased slightly.
Low inventory is not a problem exclusive to local car manufacturers. It is a worldwide phenomenon.
There were 1.06 million cars in inventory in the United States in July, down 59% year on year. The figure is down 5.36% on the month.
Japanese car inventories are particularly low. Subaru had seven days of inventory and Mazda Motor had 13 days. Toyota had 18 days of supply and Nissan 19 days.
General Motors has 22 days of inventory and Ford has 41 days.
âAutomakers were profitable in the first half of the year because of the sale of their inventory, but the situation is different now,â said analyst Kwon. âNow there are not enough quantities in stock to be sold, and when and to what extent production resumes will be the key to determining future performance. ”
The shortage of cars in stock is also a problem locally. People have to wait about six months to receive their cars when they buy models like the Tuscan and Santa Fe from Hyundai Motor and the Sorento and Sportage from Kia.
“The chip shortage was expected to be somewhat resolved in the third quarter, but the current situation means that the supply was not sufficient,” said Ko Tae-bong, analyst at HI Investment & Securities. “It is important to decide how to allocate the chips, and most chips are expected to be supplied to the local market more profitably.”
Ko added that it will be a supplier market for the time being.
The shortage of chips disrupting auto production could continue.
Ford of Europe President Gunnar Herrmann told CNBC at the IAA Mobility 2021 auto show in early September that “the chip shortage could continue until 2024” and “it is difficult to determine exactly when it will end.”
The AutoForecast Solutions market tracker predicts that automakers around the world will produce 9.4 million fewer vehicles due to the chip shortage.
BY KIM YOUNG-JU, LEE TAE-HEE [[email protected]]