Just a bump in the road?

Aegon Asset Management
By July 19, 2021 14:45

Just a bump in the road?

Despite investor worries about the impact of semiconductor shortages to automotive production and input cost inflation, the automotive industry remains healthy and the evolution of the industry towards electric vehicles remains strong. 

After finishing 2019 at roughly 89 million units, the global seasonally adjusted annual rate (SAAR) fell below 77 million units in 2020 due to the pandemic (exhibit 1). While semiconductor limitations have created a headwind to those initial production estimates, expectations for 2021 continue to project a robust recovery in global sales. Current IHS global estimates are around 84 million units for fiscal year (FY) 2021 which would equate to a roughly 10% year over year growth. FY22 should continue to highlight the strength of the auto market with current sales expectations of close to 89 million units. So, despite the pandemic and issues from semiconductor shortages, global auto sales are currently and expected to remain healthy

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Bas Smit
Business Development Manager, Netherlands
Tel: +31 6 12 27 62 73
bas.smit@aegonam.com

Jeroen van Wilgenburg
Business Development Manager, Netherlands
Tel: +31 6 51 35 24 20
jeroen.wilgenburg@aegonam.com

Aegon Asset Management
By July 19, 2021 14:45

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