Five Million Fewer Vehicles Produced Worldwide in 2022 and 2023?

The consequences of the pandemic, the shortages of microchips and other components and now the war in Ukraine are being felt across the auto industry, with production dipping at several manufacturers.

Some are revising their production estimates for the next months downwards. We saw this with Toyota and its decision to cut back on production in April. Now, a study by S&P Global Mobility (formerly IHS Markit) paints a rather pessimistic global picture for the next two years.

According to Automotive News, a global production cutback could result in five million fewer vehicles being produced this year and next than planned, specifically due to the expected fallout from Russia's invasion of Ukraine.

To give you an idea of the magnitude of this number, manufacturers look set to produce 81.6 million vehicles this year and 88.5 million next year, according to the S&P study. For each year, that's 2.6 million fewer than expected.

“The downside risk is enormous,” Mark Fulthorpe, executive director of global production forecasts for S&P Global Mobility, said this week via a statement. In the worst-case projection, production could be four million vehicles below normal projections for each year.

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