More than a year since the Covid pandemic began, the Auto market has yet to stabilize, mostly because of the sudden surge in demand for new and used cars after the country reopened. As the world went into lockdown, several factories were shut down leading to a scarce supply of various components, the most notable of which were semiconductors, which are a critical part of modern cars.
Because of this, even after the factories were reopened, manufacturers couldn’t cope with the sudden rise in demand for new cars. Most manufacturers canceled their orders for semiconductors and chips at the start of the pandemic, and the sudden surge in demand caught them off-guard, having to reorder all the components, taking a lot more time.
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