Wednesday, November 30, 2022
HomeDigit NewsRussia and Ukraine war also affected car makers, planning to shift production...

Russia and Ukraine war also affected car makers, planning to shift production from Russia

There will be a bad impact on the global vehicles market:Russia and Ukraine war also affected car makers, planning to shift production from Russia

The ongoing war between Russia and Ukraine has weakened the European and global markets. Due to which the companies making vehicles are also expected to suffer heavy losses due to this. According to experts, this will also affect the supply chain, production and work force of the auto sector.

Several companies, including vehicle maker Volkswagen, Renault and tire maker Nokian Tires, are planning to halt production and shift their plants in the wake of Russia’s attack on Ukraine. Hyundai and Kia companies are manufacturing here on a large scale. Which has been affected due to the war, due to this the headache of these Korean companies has increased.

Russia Largest Supplier
of Palladium Metal Palladium metal is found in large quantities in Russia. Russia is the largest supplier of palladium metal. Palladium is used to reduce the effect of toxic gases such as carbon monoxide, nitrogen dioxide emitted from vehicles. Along with this, the exhaust of petrol and hybrid vehicles also happens in mobile phones, electric equipment, dental treatment, jewellery.

Companies like Volkswagen and Skoda postponed shipments
As the war started, Russian companies have postponed their shipments from many global automakers and local dealers. Audi has issued a notice to Chevrolet, while Volkswagen and Skoda are preparing for it. Porsche and Tata Group Land Rover have also started postponing their shipments. According to the report, Audi has also informed its partner that it will put the shipments on hold for now. At the same time, any inventory that is already in Russia will continue to be delivered.

The shortage of semiconductors will affect Hyundai and Kia
. Korean carmakers Hyundai and Kia Ukraine are dependent on the country. They import gases like neon, krypton, xenon from Ukraine. Due to which these companies will have to face the shortfall in the supply of EV batteries to semiconductors. Due to which their price can also increase.

Hyundai set up first factory in Russia in 2010 The
Hyundai Group first set up a factory in Saint Petersburg, Russia in 2010 and most recently the first General Motors facility to produce Hyundai Tucson, Palisade and Kia Sportage for export to North America Bought it. Vehicle companies currently produce more than 2.30 lakh cars annually in Russia.

Hyundai, Kia and Hankook Tires evacuated offices from Russia
Die operates a local sales office in Kiev, Ukraine, and Kia produces the Rio sedan and hatchback at the Jazz factory in Zaporozhye, Ukraine. Another Korean company, Hankook Tires, also vacated its sales office in the country. This could seriously affect global EV battery cell production in Ukraine.

The Korean Automotive Manufacturers Association fears its group’s sales could drop as much as 29% this year. Similarly, in 2014, auto imports declined by 62% after the Russian incursion into Crimea.

US Treasury Department Imposes New Sanctions Target banks such as Sberbank, VTB Bank, Otkriti, Sovcombank and Novicombank. The move is meant to freeze any US assets held by companies and their officers who have banned any trading with the US organisation.

JD Power and LMC Automotive Analyst have cut production of lightweight vehicles globally to 85.8 million units in 2022, a cut of 4 lakh vehicles this year. However, sales of lightweight vehicles are still expected to grow by 5% at the global level.

Other vehicle manufacturers include Renault and its partner brands Stelantis and Toyota. Renault has already announced that it will not be producing in Moscow (Russia) from February 28 to March 5.

- Advertisement -
MOBILE

- Advertisment -

- Advertisment -spot_imgspot_imgspot_img

Auto

Two Wheeler

BUSINESS AND FINANCE

Digit News

spot_img