The automobile industry was one of the areas most affected by the COVID-19 outbreak. Because the chip crisis due to the pandemic slowed down automobile production worldwide. This led to higher automobile prices and making it more difficult to buy a vehicle. But now, it is said that a new crisis awaits the automobile world. The new cause of the crisis is the war between Russia and Ukraine.
You may not have understood how the war between Russia and Ukraine could lead to a crisis in the auto industry. Let’s explain now; Russia is one of the world’s leading raw material suppliers. This country is critical for nickel, which is used in batteries for electric cars. In fact, Russia is the third largest nickel supplier in the world. Similarly, palladium, which is used in catalytic converters in cars with internal combustion engines, is plentiful in Russia. The country alone meets 40 percent of the global need.
If Putin stops exports, the automotive industry may come to a standstill
When we look at the developments in general, we can say that the world is on the side of Ukraine. The West especially applies the economy card in order to end Russia’s attacks and to make the country passive. This situation creates anxiety for the future of the automobile industry. Because Russian President Vladimir Putin can play the stop export card against the western embargo. This brings the end of the automobile giants in the west in production. If companies cannot find new suppliers, automobile production could be interrupted globally.
Russia is not just a supplier of raw materials for the automobile industry. The country has turned into a production base of world giants. More than 1 million cars are produced annually in Russia. A significant part of these cars are also exported. If the West imposes an embargo on him, Putin can also slow down or stop automobile exports altogether. In such a case, the most affected would be automobile manufacturers and consumers…
It should be noted that; The war between Russia and Ukraine has already directly affected the prices of raw materials. For example, the price of palladium rose to $2,500 by the time the war broke out. This means that even in the absence of an embargo, the automobile industry will be affected. According to industry sources, the reflection of the increase in palladium price on vehicles will be up to $150 for cars such as sedans and hatchbacks, and up to $200 for SUVs and larger vehicles…
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