A Second Chip Crisis in the Automotive Industry

The chip crisis in the automobile industry during the coronavirus process, which affected the whole world, re-emerged with the Russia-Ukraine war.

While this situation was expected to further increase the prices of burning vehicles, the hikes in fuel also caused many consumers to delay their automobile purchases. Indicating that nearly 90 percent of neon gas, which is the most important raw material for chip production, is met by Ukraine and Russia, miniyol.com Co-Founder Yaşar Çelik said, “The problem here is that unavoidably high vehicle prices increase a little more. Considering the fuel prices, consumers resort to the rental option for their short-term needs. For this reason, there has been a dynamism in the sector.”

Russia's occupation of Ukraine and the resulting economic sanctions continue to negatively affect many different areas from food products to high-tech products, with negative effects on supply chains. Chief among these sectors is the automotive sector, which is already struggling with limited vehicle supplies due to the global semiconductor shortage caused by COVID-19. While some companies report that the semiconductor orders planned for Turkey will be delayed by 1-2 months, this situation is expected to be reflected in vehicle prices. When the increased fuel prices are added to the prices of the hand-burning vehicles, the citizens who are considering buying a vehicle have started to turn to the rental option for short-term needs.

Diesel vehicles are preferred over gasoline.

Yaşar Çelik, co-founder of online car rental platform Miniyol.com, stating that the war had a ripple effect on industries and the automotive industry also suffered, said, “Russia and Ukraine produce semiconductors as well as important gases and metals. The disruption here affects the whole world closely. This war could reduce the production of millions of cars. The sector may be faced with a new supply crisis. Another effect of the tension between the two countries on the sector was over fuel, changes in consumer behavior began to be observed. For example, while there were delays in vehicle purchases, the rental option started to move according to the previous periods. Fuel prices have changed the rental preference from diesel vehicles," he said.