The microchip shortage continues affecting automotive sales, possibly limiting the boost the festive season usually has in annual sales. This issue also comes during a global shortage of rubber that caused the highest rise of tire prices in Mexico in decades. Meanwhile, the automotive future continues to arrive at full force with investment in electric vehicles through a new company’s massive launch success and international commitment towards the complete production of zero emissions vehicles by 2040.
This week in automotive:
Tire Prices Increase Due to Shortages
Tire prices rose by 13.2 percent in Mexico, the highest rise in the past 25 years, due to the ongoing microchip shortage and an additional shortage of rubber caused by a leaf disease limiting raw material availability.
Chevrolet Opens Sales Through Amazon Mexico
Chevrolet released their new SUV Groove 2022 exclusively for purchase through amazon.com.mx, allowing customers to browse and shop the model digitally so they can receive a kit to pick up their vehicle at a dealership of their choice. Chevrolet’s partnership with the largest online B2C retailer in the country signals a step forward in the industry’s digitalization.
Mexico Commits to Emission-Neutral New Vehicles by 2040
At the UN Climate Change Conference in Glasgow COP26’s ministerial meeting by the Counsel for the Transition Towards NEUTRAL Emissions Vehicles, Mexico signed a commitment to work intensely toward accelerated proliferation and adoption of zero emission vehicles. Of the 34 countries that also signed, developed economies committed to work toward selling only zero-emission vehicles by 2040.
Production Decline Increased Vehicle Theft: CANACAR
The shortage of semiconductors caused a decline in light vehicle production that has increased the robbery of car transporters three times in Mexico, each valued at over US$330,000 in addition to over US$580,000 worth in transport. At the same time, used vehicle theft has decreased throughout the year.
Rivian Valued Over US$100 billion; Will it Dethrone Tesla?
Electric vehicle automaker Rivian debuted on Wednesday and raised US$11.9 billion, even though it has manufactured only a few hundred vehicles. The company is now worth over US$100 billion. Tesla CEO Elon Musk believes the real test of Rivian’s future will depend on whether or not the company is able to achieve high production and breakeven cash flow.
India Sees Worst Festive Season for Automobile Industry in a Decade
Sales during the festive season, which were globally expected to save vehicle sales from the microchip-caused slump, dropped 5.33 percent year-over-year for Oct. 2021 in India, according to the Federation of Automobile Dealers Associations (FADA). The fall could be indicative of a larger trend for the international automotive sector’s sales during the next two months.