Global light vehicle production is expected to grow 50 percent in the second-quarter as the industry recovers from the pandemic, but supply constraints remain a challenge, data firm IHS Markit said on Wednesday.
IHS Markit estimates semiconductor capacity will be able keep up with demand starting only in the first quarter of 2022.
"The rise of new (COVID-19) strains especially in regions with limited vaccines continues to threaten the availability of semiconductors due to workforce reductions," the forecast said.
Supply chains were hit hard in the first-quarter by the storms in Texas, the Fukushima earthquake in Japan and the fire at a Japanese semiconductor factory owned by Renesas Electronics Corp. IHS Markit estimates the greatest impact of supply disruptions was felt in the second quarter.
Reduced production due to shortages of semiconductors has resulted in the lowest levels of unsold cars and trucks on dealer lots in years, according to consulting firm AlixPartners.