The worsening Ukraine-Russia conflict would be a double whammy for those looking to purchase a car as fuel prices are expected to shoot up post state elections given that the price of international crude is hovering around $135 a barrel, while vehicle costs are also likely to go up the back of rising raw material costs. The waiting period for your much-loved SUV will get longer as the escalation threatens to cut off supplies of crucial inputs to make semiconductors, which are used in the manufacturing process by auto majors across the world.
Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cellphones to various other electronic items. The usage of semiconductors in the auto industry has gone up globally in recent times with technological advancements and new models coming with more and more electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems, besides the engine control unit.
