Demand for automobiles recovered significantly with the easing of pandemic restrictions. However, this year, high inflation, supply chain disruptions, and a lingering chip shortage have kept the industry under pressure.
Moreover, due to soaring gasoline prices since the start of the year, the operating costs of gasoline-powered vehicles rose substantially, keeping away potential buyers. However, this boosted the appeal of electric vehicles. Despite the strong product pipeline, EV makers have yet to be able to ramp up production due to chip shortages, high raw material prices, and supply chain disruptions.
