NAIROBI, Kenya, Oct 24 – Auto dealer DT Dobie expect shortage of semiconductors that are used in cars to ease by the second half of 2022.
The firm’s Managing Director (MD) Chris Ndala predicts shortage to subside as production improves.
From the third-quarter of 2021, the vehicle assembler has been battling chip problems, exacerbated by tough lockdown measures that were imposed in producing countries such as China and Taiwan.
“Is this crisis over? Is not yet over. When are we going to see the light at the end of the tunnel? We are looking at the second half of next year and this is valid for all the brands. Second half of next year, we think that the supply will be back to normal,” Ndala told Capital Business.
Chip is an important component in vehicle, fridge, TV, and radio manufacturing.
They are the brains of many gadgets, allowing them to store or transmit data seamlessly.
When major economies such as China and USA imposed tough lockdown measures last year, a number of chip makers cut production, hampering supplies.
Immediately the restrictions were lifted, demand for the products went up, disrupting the global supply chain after demand outpaced supply.
Ndala added scarcity has impacted the assembly of brands such as Volkswagen, among others.
He, nonetheless, says that they keep receiving the stock in bits and pieces.
“For example, if you walk in my showroom of Mercedes there are no stock but that does not mean I am not selling, I sell every month,
“How does this affect the production? Obviously we are giving jobs but then if we do not have stocks people will stay without a job,” He added.
