The global semiconductor shortage will ease this year allowing vehicle production to increase, according to Hyundai Motor Co.
The manufacturer’s executive vice president, Seo Gang Hyun, said on a company conference call that he expects the shortages to ease from Q2, allowing vehicle production to rebound in the second half of the year.
According to Reuters, Seo explained that the shortages would continue for the first quarter of the year as a result of the Omicron COVID-19 variant which has prolonged the pandemic across Southeast Asia.
However, moving into the second quarter, Hyundai is predicting vehicle production to gradually increase, and the manufacturer is counting on a 20% sales increase in its biggest market, North America, in 2022.
Gang Hyun said: “The normalization of auto chip supply and demand is expected in the third quarter, when the capacity of semiconductor companies is expected to rise.”
The expected rise in production will be welcome news to Hyundai, as the manufacturer looks to make up for a tough 2021, falling below its targeted 4 million vehicle sales.
Earlier this month, Hyundai and Kia outlined their forecasts for the year, predicting combined global sales to jump 12.1% in 2022.
A statement released by Hyundai Motor read: “In 2022, Hyundai Motor plans to expand its market share and strengthen profitability through efforts to stabilise chip supply and demand, adjust vehicle production schedules, strengthen electric vehicle lineups as well as optimising sales profit and loss by region.”