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Russia’s invasion of Ukraine could put pressure on light vehicle sales growth

Automotive industry consultants JD Power and LMC Automotive said Russia’s invasion of Ukraine poses “significant risks” to the recovery of global light vehicle sales this year.

Consultants have cut their forecast for global light vehicle sales from 400,000 units to 85.8 million units, also as rising oil and aluminum prices may discourage buyers from spending. new car and vans.

Jeff Schuster, LMC Automotive’s president of Americas operations and global vehicle forecasting, said that global vehicle supply and prices will come under additional pressure based on the severity and duration of the conflict. conflict in Ukraine.

Russia Attacks Ukraine causing oil prices to rise to more than $100 a barrel for the first time since 2014 on Thursday, with Brent crude touching $105.

The auto industry is still grappling with a global chip shortage that forced them to cut production, though car price offset that impact to some extent.

February US retail sales of new car is expected to drop 5.7% to 922,100 units, although the average trading price is set to hit a monthly record of $44,460, up 18.5%.

“Ongoing supply chain disruptions, coupled with brief production shutdown announcements by some manufacturers, means that,” said Thomas King, president of data and analytics at JD Power. general inventory situation is unlikely to change in March.”

However, global light vehicle sales are expected to grow 5% in 2022, according to the report.

(Reporting by Nilanjana Basu in Bengaluru; Editing by Amy Caren Daniel)

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