An already tangled car dealership could be hit again by the war – Is the chip shortage going on?

The car dealership has really coagulated this year. The first registrations of passenger cars in January-February have fallen by 19.2 per cent from January to February last year, says the Automotive Information Center.

In February, the number of first registrations of passenger cars was 22 per cent lower than a year ago. The main reason for the drops is that manufacturers are unable to supply new cars due to a shortage of components.

The trade in used cars decreased by 7% from the comparison period in the first half of the year. Only used motorhomes and buses have sold a little more than a year ago.

In a car dealership in the Helsinki metropolitan area, a customer marveled at an empty yard. “Everything for sale fits inside the store,” the merchant said.

The worst shortage of electric cars

Keskon in the car trade, availability problems began to show in the last quarter of last year. The operating result for October-December improved, but net sales decreased from the comparison period, as no new cars were received from importers due to a shortage of components.

“The shortage of components, mainly the chip, started already last summer due to the growth in demand for electronic products related to the corona. We do not yet know the effects of the war in Ukraine. Excluding the effects of the war, the shortage is expected to last for the first half of the year, and the situation is expected to be significantly better in the second half. It remains to be seen what effect the war will have on this availability, ”says Kesko’s Vice President, Automotive Matti Virtanen.

Kesko imports Volkswagenin signs. The turnover of the Group’s automotive business was EUR 1 billion last year, and the operating result doubled to 5.2 per cent.

The sales of the entire division have thus been declining, with Kesko’s car sales growing last in June. In February, Kesko’s car sales shrank by 21.6 per cent year-on-year due to the absence of new cars.

“Difficulties in accessing cars depend on the make and model. The longest times are in all-electric cars and charging hybrids, where the delivery time is 4-12 months. There are also exceptions, because it is possible to get Cupra Born electric cars faster, for example, ”says Virtanen.

“Volkswagen is not imported from Russia to Finland, but there are subcontractors in the western part of Ukraine who manufacture components for the Group’s brands. It is not yet known how the war will affect this supply chain in the longer term. ”

The cars sold by Kesko come to Finland by ship from Europe and South Africa. The war has not affected this supply chain.

Now we are competing for delivery

According to Virtanen, it is impossible to estimate the market shares of the car trade in the current situation.

“Currently, the market shares do not tell us anything about the real market situation, but about how each brand has succeeded in sourcing components and thus been able to manufacture cars. It therefore describes delivery capacity. Kesko’s car trade has been the overwhelming market leader in Finland, and we will continue to strive for that, ”says Virtanen.

There has also been a shortage of used cars. Kesko is also investing even more in this area.

By Editor

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