Lack of chips? The carmakers focused on more expensive cars. Now they have record profits – PRAVDA.sk

Most cars have recorded high operating profits in the past six months.

The global automotive industry recorded record operating profits in the first half of the year, according to the consulting company EY.

According to EY, the 16 largest automotive groups recorded operating profits totaling € 71.5 billion in the first 6 months of 2021. In the same period a year ago, they recorded a loss of 4.1 billion euros for the corona crisis, which disrupted global supply chains and caused a drop in demand.

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Most automakers have recorded high operating profits in the past six months, despite global car sales as well as average sales remaining below pre-pandemic levels.

In the first half of the year, 33.5 million cars were sold worldwide, which was 11 percent less than in the same period in 2019. Sales of the 16 largest automobiles at a total of 809 billion euros were also lower by the first half of 2019. 2 percent.

EY automotive expert Peter Fuss said the manufacturers benefited from the austerity measures they took during the coronary crisis and the trend towards more expensive and larger models. In addition, the current shortage of chips creates a favorable price environment with high demand for cars.

“The lack of chips means that automakers are focusing on higher-margin vehicles and are less dependent on high sales discounts. Currently, demand is higher than supply and the automotive industry can take advantage of this situation, “said Fuss.