The global semiconductor shortage and supply chain crisis exacerbated by the ongoing Russian-Ukraine war have wreaked havoc on the auto manufacturing industry. However, massive government and private investments to boost semiconductor production should gradually ease the problem and help auto manufacturers reinitiate operations.
Moreover, the rising demand for electric vehicles due to rising oil prices and climate change concerns should drive the industry’s growth. Also, traditional automakers might benefit more because of their broad portfolio of cars and market dominance. According to a report by Market Research Future, the automotive industry is expected to grow at a CAGR of 4.5% by 2028.
