Some factories in Ukraine tried to continue operating in the midst of the invasion. The workers were reportedly forced to flee their jobs to escape the rocket fire. In March, S&P Global Mobility, formerly IHS Markit, cut its forecast for global car production by 2.6 million vehicles in both 2022 and 2023 due to the collision. The worst case scenario was a total of 4 million lost vehicles. European car production is expected to fall by around 9% – around 1 million cars. Some of this will be directly due to lost car sales in Russia and Ukraine, but these countries together make up a small share of the global car market – about 2% of the total in 2021. The biggest concern is the shortage of materials and spare parts that are already affecting European carmakers and, the report warned, could spread to other markets if the war continues. Separately, S&P Global Ratings credit analysts also predict that in 2022 global car sales will fall by 2% below 2021 levels. This is a significant decrease from the 4% -6% increase in sales for 2022 that he had forecast last time the group in October 2021. The report highlighted the shortfall in the supply of critical car parts from the region, perhaps mainly cables from Ukraine. Also at risk are the raw materials – Russia produces about 40% of the world’s raw palladium – which is used to clean vehicle exhaust. The area is also a producer of nickel, which is used in electric vehicle batteries. Even common minerals and metals, such as iron, are affected. All of these are basic materials used to make cars. Watch the video to learn more.
