Hyundai has kept its assembly lines rolling when its competitors are struggling with the shortage of auto chips. Analysts suggest this stockpile is the result of last year's purchases when its competitors had avoided purchases seeing the pandemic trends.
Apart from Japan's Toyota Motor which had declared some days before that its chip inventory could suffice the four months production, globally amongst the automakers, it is only Hyundai and Kia Corp, the sister concern of Hyundai, that have sustained a stock of low-tech chips.
The shortage has hit the automakers worldwide forcing them to cut on their production. Volkswagen and General Motors are also not spared by this and have instigated Germany and United States to resolve the shortage soon. Hyundai may also join the league of its rivals if this shortage doesn’t end soon.
This South Korean Automaker had bought a lesser number of chips in 2020 than in 2019 but it had accelerated its purchases of auto chips towards the end of the previous year while cutting on the production at the beginning of this year as a result of COVID-19.