Pandemics, computer chip shortages, and war are an extraordinarily frightening combination for the economy in general, and perhaps for the auto industry in particular.
New car deliveries to Norwegian auto customers dropped after the new year. The wait for new cars has risen for many of the most popular models on the market. The problems began before the conflict in Ukraine, which made the situation much worse.
– Both Ukraine and Russia are important subcontractors of auto parts and raw materials for the automobile industry. The war means consumers should expect global auto production to slow further on top of the Corona delays, Thor Egil Braadland, NAF’s government communications officer, says in a press release.
Read also: Customers have to wait: German carmakers have been hit by the Ukraine crisis
double negative effect
At the same time, the price of fuel made the purchase of a new electric car more attractive. This doesn’t just apply in Norway, something that NAF believes will have a double negative impact on Norwegian car buyers:
The demand for electric cars in Europe will increase due to the decrease in the number of petrol and diesel cars in the market. In a situation where the demand for electric cars is increasing, and at the same time the supply of new cars is declining, it is not guaranteed that Norway will win the battle over where the new electric cars will go. Norway is one of the smallest car markets in the world. So when the big countries want more electric cars, they get them, while we have to wait, he says.
Read also: The Swedish government is proposing a big support package for the people
It will not be possible to change
Thus, one is in a situation where the demand for a hard-to-get product is high, and so those who want to change get stuck with their petrol or diesel car.
Delays due to Corona contributed to a 25% drop in new car sales in February. The waiting time for new cars is likely to increase even more in the future. This increases the need for tax cuts on gasoline and diesel even more, as people are not allowed to trade in their cars, according to an NAF report.
Asking for a Fee Cut Now
According to NAF, the result is that more people are keeping their diesel or petrol cars for longer than they thought. With fuel prices on the rise, Bradland believes the government should use more tools to make waiting time easier for people:
Delayed fuel tax cuts. The government must now deliver on its promises to cut taxes on petrol and diesel. When people don’t have the opportunity to switch to an electric car, that’s an obvious step, says Braadland.
Read also: Big differences in electric car revealed – now there could be an important change
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