The World Steel Association in its latest Short Range Outlook for 2022 and 2023 said that “The global auto industry’s recovery continued during the first half of 2022 amid the headwinds largely related to COVID-19 restrictions in China and lingering supply chain disruptions. In the US, light vehicle production is poised for continued upward movement provided supply bottlenecks continue to ease, even as the broader manufacturing sector slows sharply. In Mexico, after a weak performance in 2021, auto production is expected to show strong growth in 2022 and 2023 on the back of the gradual alleviation of the shortages of semiconductors. In India, the momentum for passenger car production is strong and is expected to remain healthy with strong order books and improving microchip supply. In South Korea, auto production is expected to show growth as the lockdowns in China and supply chain disruptions are somewhat alleviated.” Worldsteel said “Meanwhile, in Germany and Japan, the recovery is taking place at a slower pace, with more visible improvement expected in 2023. In Russia, passenger car production plunged with weak demand and increasingly severe shortage of components.” Worldsteel also said “More recently, supply chain disruptions are getting less acute, and it is expected that the situation will show further improvement in 2023. However, rising inflation and especially rising energy prices are squeezing household budgets, while rising interest rates make cars less affordable. Potential weakness on the demand side may weaken the recovery of production.” Worldsteel added “However, the production and sales of EVs have been gaining momentum, especially in China and Europe. In China, production of EVs jumped by 120.0% to 3.28 million units, accounting for 22.5% of total vehicle production in the first seven months of 2022.”
The World Steel Association in its latest Short Range Outlook for 2022 and 2023 said that “The global auto industry’s recovery continued during the first half of 2022 amid the headwinds largely related to COVID-19 restrictions in China and lingering supply chain disruptions. In the US, light vehicle production is poised for continued upward movement provided supply bottlenecks continue to ease, even as the broader manufacturing sector slows sharply. In Mexico, after a weak performance in 2021, auto production is expected to show strong growth in 2022 and 2023 on the back of the gradual alleviation of the shortages of semiconductors. In India, the momentum for passenger car production is strong and is expected to remain healthy with strong order books and improving microchip supply. In South Korea, auto production is expected to show growth as the lockdowns in China and supply chain disruptions are somewhat alleviated.” Worldsteel said “Meanwhile, in Germany and Japan, the recovery is taking place at a slower pace, with more visible improvement expected in 2023. In Russia, passenger car production plunged with weak demand and increasingly severe shortage of components.” Worldsteel also said “More recently, supply chain disruptions are getting less acute, and it is expected that the situation will show further improvement in 2023. However, rising inflation and especially rising energy prices are squeezing household budgets, while rising interest rates make cars less affordable. Potential weakness on the demand side may weaken the recovery of production.” Worldsteel added “However, the production and sales of EVs have been gaining momentum, especially in China and Europe. In China, production of EVs jumped by 120.0% to 3.28 million units, accounting for 22.5% of total vehicle production in the first seven months of 2022.”
