It confirmed its repercussions on the supply of electronics and cars, especially electric ones

Companies: The impact of the “electronic chip” crisis on the local market will appear within 6 months

• Luxury cars will be among the least affected by the crisis, with low production volumes compared to other categories.

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Officials of companies operating in the automotive and electronic devices sectors stated that the global crisis of lack of electronic chips will have an impact on the volume of supply in general to the markets of the country and the region as a whole, noting that electric cars will be among the most affected groups, while electronic devices will be affected in varying proportions.

They told "Emirates Today" that the extent of this impact will become clear during the next six months at most, and that it will vary from one sector to another according to supply and demand, expecting that there will be price increases for some products.

The main reason

In detail, Michel Ayat, CEO of the Arabian Automobiles Company, one of the Abdul Wahed Al Rostamani Group companies, dealer of Nissan, Infiniti and Renault cars in Dubai and the Northern Emirates, said that the main reason for the global chip shortage crisis is due to the impact of the factories that produce these. The chips are affected by the repercussions of the Corona pandemic, whether with regard to closures for varying periods or the production process, and it is expected that this will have an impact on the supply of cars in general to the markets of the country and the entire region during the coming periods.

Ayat added that the lack of chips recently affected production lines in various car factories, noting that with the current high demand in global markets for cars, after a year characterized by slow demand, due to the repercussions of “Corona”, the signs of the crisis appeared in the markets, pointing out that it is from It is currently difficult to know the extent to which the country's markets will be affected by this, but the matter will become clearer in more detail during the next six months with expectations that the crisis will continue.

electric cars

For his part, Mamdouh Khairallah, General Manager of Rolls-Royce Motor Cars, the Arabian Gulf Mechanical Center in Dubai and the northern regions, said that according to current indicators in the automotive industry at the global level, it is expected that the supply of cars to the country's markets will be affected. And the region during the coming period, due to the impact of the shortage of electronic chips, which has wide resonance and extended repercussions on different sectors globally.

He added that the size of the impact of the lack of supply will need a not short time until its features become clearer in more detail in the country's markets, explaining that the effects are coming, but they will become clear during the coming months, as it is estimated that the effects will continue for periods ranging from six to 12 months, and the possibility of Prices change or not.

Khairallah indicated that electric cars will be among the categories most affected by the chips shortage crisis, due to their greater dependence on these products in manufacturing and production processes.

luxury cars

Khairallah stated that the impact of the electronic chip crisis will vary in severity from one category to another between cars, indicating that, for example, cars that rely more on smart systems and computer software will be among the most affected compared to cars that lack or have fewer services for computer systems. .

He added that the luxury car categories will be among the least affected by the crisis, with a low production volume compared to other categories, as some production operations for luxury cars range between 4000 and 5000 cars annually, compared to Japanese cars whose annual production reaches more than five million cars.

Electronics dip

In turn, Jumana Karam, Head of the Products and Marketing Unit at Acer, said: "There is no doubt that the lack of electronic chips will have significant effects during the coming period on the decline in the supply of electronic devices of various categories to the markets of the country and the region in general," noting that the crisis did not It appears significantly so far in the local markets due to the availability of a stock of products, in addition to the stock available to the main supplier companies, which will gradually decline.

Karam added that the new orders for supply in the markets witnessed a delay, with demand pressure on shipments, supply and production lines, as well as primarily on chip production plants, which led to an increase in prices at the global level, which is likely to be reflected at the local and regional levels during the period. Coming under the pressure of higher freight rates.

increasing of demands

Karam pointed out that the pandemic has increased the demand for laptops and tablets, with remote work and education in many countries, and therefore the sector was among the most prominent areas affected by the repercussions of the shortage of electronic chips, which will appear gradually during the next few months, especially With the spread of the crisis at the international level for long periods that may exceed a year.

supply decline

In the same context, Ashraf Fawakherji, the general manager of the “Task” Technology Company, which specializes in the supply of phones and Xiaomi products, said, “The crisis of lack of electronic chips has extended effects on all categories of electronic devices, from TV screens to mobile phones, through computers. Portable and (electric scooters), and electronic games and other products, which will gradually lead to a decline in supply operations, but in varying proportions for electronics according to the demand for each of them, and the available stock of them in the local markets and with the main supplier companies.”

the prices

Fawakherji added, that global markets have already witnessed, under the pressure of this crisis, varying price hikes in some devices, including phones, but most companies have absorbed these increases with the intensity of competition in light of the continuation of the “Corona” pandemic, pointing out that with the continued price increases. In light of the continuing chip shortage crisis, it is likely that prices will change in the local market during the coming period.

He stated that it is currently difficult to predict the extent of the supply shortage of any product that depends on electronic chips in the country's markets, but this will become more clear during the next four months, as the effects will vary from one sector to another according to supply and demand.

The emergence of the crisis

Mamdouh Khairallah, General Manager of Rolls-Royce Motor Cars, the Arabian Gulf Mechanical Center in Dubai and the northern regions, said that the global chip shortage crisis was primarily caused by the repercussions of the “Corona” pandemic, whether in relation to closures or production reductions in factories with the decline in demand during During the peak of the pandemic, he explained that with the return of demand to strong rates, a crisis of supply shortage appeared, especially with the limited number of factories that capture the largest shares of production globally in the United States or in Asian countries, in addition to the trade war between China and the United States. Negative repercussions on the chips crisis and increased its severity.

• Companies expected to increase the prices of some products during the coming period.

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