Let's go back to the bullock-cart: Cars are costly!

Sindujaa D N

Metal costs in the global car sector are growing, which is projected to result in a continuous rise in vehicle prices. The war between russia and ukraine has caused a catastrophe for automakers. The Russian invasion of ukraine has resulted in a significant increase in the price of metals used in automobiles.



Palladium is frequently employed in the manufacture of automobiles, from aluminium to catalytic converters, while nickel is commonly used in electric vehicle batteries. Palladium is the most costly metal, and russia is the greatest palladium producer.


Aside from increased metal prices, supply chain interruptions are also wreaking havoc on the car sector. The ukraine situation has had an impact on crude oil prices. Crude oil prices have climbed considerably, as have gasoline and diesel costs. Without it, the ukraine situation might result in a semiconductor chip scarcity.



Ukraine is a major producer of neon, the use of which is important for making microchips. The ongoing war in ukraine has severely affected the production and supply of neon.


At the moment, there is a huge increase in crude oil and energy costs, said Carlos Tavares, CEO of Stenlitis. This could put more pressure on the auto industry. It is possible that this pressure will also be on the consumers. As a result, consumers will have to pay higher prices for their vehicles.


Aluminum and palladium, both used to make stainless steel for automakers, hit record highs on Monday. It reached $ 100,000 per tonne for the first time on Tuesday. The global auto industry is under pressure due to the Covid 19 epidemic and related disruptions. The ukraine crisis has begun at a time when the auto industry is emerging from the Corona crisis.



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