Global chip shortage might impact vehicle production in Pakistan

A computer chip shortage has suspended the production lines of several automakers worldwide. This semiconductor chip shortage might as well affect auto-manufacturing in Pakistan.

Several reports that highlighted the gravity of the situation revealed that the shortage could last for almost an entire year.

Several technical features in most new vehicles heavily rely on these computer chips to function properly. Therefore, the shortage of semiconductor chips directly impacts production lines, as several manufacturers stall production. This includes automakers such as Toyota, the Volkswagen Audi Group (VAG), Ford, the Stellantis Group, Honda, and the Jaguar Land Rover Group.

Since the shortage could go as far as a year, it is necessary for automakers to switch to overdrive mode, i.e. make significant changes in their production routines. The development has led several new automakers to revert to analog Head Unit Displays (HUDs) to keep up the production of their vehicles.

A Washington Post report highlighted that the production figures of the vehicles might go down by 1.5 million or five million this year compared to expectations.

With the pandemic having resulted in huge losses, the chip shortage has become another cause for further concern to auto manufacturers. The compound effect of the outbreak coupled with the shortage of chips creates anticipation about the future of car producers.