More troubles along the way: The brutal war between Russia and Ukraine is expected to have a significant impact on the automotive industry both in terms of prices and in terms of inventories.
It should be noted that Toyota - the leading Japanese brand in Russia - has stopped production in Russia and announced a halt to exports to the country.
Honda and Mazda also decided on a similar move.
French carmaker Renault has announced the closure of a plant near Moscow due to logistical difficulties and more.
Dun & Bradstreet estimates that the Israeli car industry is facing price increases of 5% -3% in the near term and may even be more than 5% if the war between Russia and Ukraine continues beyond the coming weeks.
Efrat Segev, VP of Data and Analysis at Dun & Bradstreet, told Israel Today that "the automotive industry has already started this year regardless of the war in a somewhat tough situation.
The year 2021 ended with record demand for vehicles with the delivery of about 300,000 vehicles, which is a record sales figure.
"Beyond the fact that in Israel there was compensation for the corona year, there is a lack of sufficient infrastructure and insufficiently developed public transportation, which raises demand. To this were added the corona effects, including the global crisis in chips used in the automotive industry.
Segev adds that "there are large manufacturers of vehicles that have factories in Russia and Ukraine, where this is a direct injury to the production processes. In addition, Russia and Ukraine are suppliers of raw materials essential to the automotive industry. Ukraine is an essential supplier to an industry called electrical braids. "Pushing car prices up in the coming months as well. Since we are in a market where demand exceeds supply, it means that unfortunately for all of us, most of the price increases will roll over to consumers and increase the cost of living. It will also cause a shortage in the car industry."
An industry source added that it seems that the increase we have already seen following the chip crisis will continue because of these additional delays throughout 2022.
According to Levy Mi-Ron, VP of the Levy Yitzhak Group, "The war between Russia and Ukraine is affecting a lot of car manufacturers in Europe, as Ukraine produces for different manufacturers in Europe the electrical wire braids and the information transmission wire braids for the vehicles.
Following the war, there is no production at all. "
According to Ohad Seligman, Chairman of EV Motors, “Many factories that supply components are located in Ukraine and Russia.
Beyond that, the dollar is rising against the other markets, which will lead to price increases. "
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