Mitsubishi says new car supply shortages to run for years

If you thought waiting six or 12 months for a new car to arrive once you’ve ordered it was a short-term issue that should clear up next year, the latest forecast from Mitsubishi Australia might have you thinking again.

Speaking to carsales, Mitsubishi Australia chief executive Shaun Westcott was unequivocal.

“There’s going to be issues for years,” he said.

“That’s my prediction, that’s what I’m saying and it’s based on my own assessment of the situation.”

The global shortage of semi-conductors required to build modern cars and other issues related to the ongoing COVID-19 pandemic have led to huge delays in vehicle production and shipping worldwide, blowing out customer delivery times in Australia and abroad as demand in the marketplace remains strong.

The world’s biggest semi-conductor manufacturer, Intel, suggested earlier this year that the crisis would not be solved before 2024 across all industries.

But according to Westcott, the automotive industry in Australia – and its customers – might be feeling the pain for years to come as demand for computer chips continues to exceed supply.

“If you look at the fact we have a backlog – everyone has seven-, eight-, nine-, 10- or 12-month waiting lists [for new car deliveries] – even as we look forward, as the number of EVs and PHEVs increases, they have 300 to 400 per cent greater intensity or richness of semi-conductors in them,” he said.

“So not only do we have a backlog, we have this tsunami that’s building demand for semi-conductors.

“Semi-conductor factories take three to four years to build, and even as capacity comes on line, the demand is going to keep pulling out ahead of it.

“So I see us living with semi-conductor shortages for a number of years more,” he said.

Westcott said the situation was not unique to any one vehicle brand and was impacting a wide range of manufacturing sectors.

“All of us, whether us or any of our competitors, all OEMs, have semi-conducting challenges, including TV manufacturers and everyone else,” he said.

“The entire world has these challenges, so everybody is typically running with several months’ [delay] and it depends on the product and model.”

That said, Mitsubishi’s vehicle supply and delivery timing has been relatively good compared to many rival car brands in Australia, helping the Japanese brand blaze a trail up the new car sales charts this year to sit in third spot behind Toyota and Mazda.

The company has just launched its new flagship SUV, the 2022 Mitsubishi Outlander Plug-in Hybrid EV, and Westcott said strong buyer interest in the model would invariably lead to months-long wait times.

“We have a number of orders that have already been placed before the price was announced, which tells us the market is ripe and ready for this vehicle. I can’t give you an exact number but there’s a lot of interest,” he said.

“We can’t predict accurately what the demand is going to be for this vehicle after launch but I’d be extremely surprised if there weren’t wait times that could extend into months.

“Based on our experience in Japan where demand is extremely high, there will be wait times.”

The Mitsubishi Australia chief added that Japanese customers currently face a four-to-five-month wait for the new Outlander PHEV.

He also revealed that demand for the conventional petrol-engined Outlander was running hot in Australia, particularly for the high-end models that come with quilted leather seats and massage functionality.

“We’ve listened to customers and they are responding,” he said.

“Demand for [Outlander] Exceed and Exceed Tourer is far higher than the lower grades and we are now conquesting people out of makes and models that may not have considered us before.”

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