AUTONEWS

Speculators profit big from the shortage of components for electrified cars

If last year the automotive industry suffered mainly from shortages of semiconductor components and disruptions in supply chains, this year these factors have been complemented by rising material prices and the consequent increase in the cost of the cars themselves. Speculators willingly seize the moment, only exacerbating the problem with their activity.

As DigiTimes explains, since late February, the automotive industry has faced a shortage of specialized electrical products and car tires. In the electric vehicle segment, there has been an upward trend in the prices of raw materials for the manufacture of traction batteries, which sometimes determine between one-third and one-half of the cost of the car.

According to the source, market participants are faced with a phenomenon as rare previously as the violation of the terms of supply contracts for certain components. This is quite predictable given the insurmountable nature of some of the obstacles manufacturers face during this challenging time.

In the Chinese market and many others, according to Taiwanese sources, private dealers found it possible to order several electric cars or scarce models of cars with an internal combustion engine, with the opportunity to resell them on the secondary market. Impatient customers are sometimes willing to overpay for the opportunity to get a car “here and now” without waiting for delivery from official dealers, which can take months or even years.

At the turn of the first and second quarters, many automakers were forced to enter into new contracts with their suppliers and therefore the price changes were transferred to the finished cars produced in that period. American manufacturers such as Ford have tried to fight speculation among official dealers, but private speculators in the secondary market are difficult to control. Manufacturers are now worried that accelerating car prices will eventually force many buyers to stop buying new vehicles. In the electronics market, a similar trend has already started to manifest itself in the second quarter.

AVnews