People are buying fewer electronic devices so chips are more available to automakers.
Toyota plans to build 10.6 million vehicles this year, more than it made in 2019.
Volkswagen thinks the Chinese market will grow by 4 to 5% in 2023.
After two years of pandemic-induced semiconductor shortages that have impacted vehicle production all over the world, automakers believe 2023 could see a return to normal.
Indeed, Toyota aims to produce 10.6 million vehicles this year, more than the 9,1 million it made in 2019 before semiconductors became so difficult to get for automakers.
This situation was caused by the pandemic since suppliers reduced their output and turned to the tech industry which saw an increase in demand because consumers all around the world were stuck at home and bought large quantities of electronic devices such as phones and computers.
Now that a recession is well on the way, the demand for these devices has diminished and suppliers have had time to increase their production rate, which means that more electronic chips and semiconductors are now available to automakers.
This wider availability has prompted many companies to begin using up the reserves of components they have been stockpiling for the last two years.
Toyota is not the only company to believe 2023 will be a better year in terms of output for the automotive industry since Volkswagen also expects to sell more vehicles this year than any since 2019.
The German automaker thinks China will play an important part in its return to normal because it expects the country’s automotive market to grow by 4 or 5 percent in 2023, reaching 23 million sales, many of which will be electric vehicles.
A return to normal production means new vehicle prices should come down and buyers won’t have to wait for months before they can take delivery.
Source: Yahoo! Finance