[Car Semiconductor Shock] Global Car Production Volume Down 7% in Q2

Renesas Fire Recovery Delay
Hyundai Motor Halts Factory Operations for Two Weeks

[Image source=Reuters Yonhap News]

[Asia Economy Reporters Kwon Jae-hee, Lee Chang-hwan] Due to the impact of a fire at the Japanese semiconductor company Renesas Technology, which has disrupted semiconductor production, global automobile production in the second quarter of this year is expected to decrease by about 7%. Renesas initially estimated that recovery from the damage would take about a month, but it is now anticipated to take several months longer.

According to a report on the 31st by Nihon Keizai Shimbun citing Nomura Securities, the number of vehicles produced by global automobile manufacturers from April to June is estimated to have decreased by 1.6 million units due to the Renesas fire. This corresponds to about 7% of the usual production volume during this period.

In particular, the Japanese automobile industry has been hit hard. Of the production cuts in the second quarter, Japanese cars are estimated to account for 1.2 million units, while overseas cars account for 400,000 units. Mitsubishi UFJ Morgan Stanley had forecasted that the Japanese automobile industry would reduce production by 500,000 units from January to June this year due to semiconductor shortages, but with the addition of the Renesas fire, the scale of damage has significantly increased.

Fukao Sanshiro, chief researcher at Itochu Economic Research Institute, stated, "Complete recovery within 3 to 4 months is difficult, and it is necessary to keep in mind that it may take at least about half a year."

Due to the shortage of semiconductors for vehicles, the domestic finished car industry is also suffering significant damage. Hyundai Motor Company announced that its Ulsan Plant 1 will halt operations from the 7th to the 14th of next month due to parts supply issues.

This content was produced with the assistance of AI translation services.