IHS Markit lowers global vehicle output forecasts amid supply chain crisis

Data forecasting firm IHS Markit said global light-vehicle production could be cut by 6.2 percent — about 5 million vehicles — in 2021.

That is the largest single adjustment to its outlook in the last nine months, the firm said Thursday. It follows losses of millions of units of production in the first three quarters of 2021.

The outlook for the fourth quarter continues to worsen among executives and analysts. The pessimism stems from a heightened risk of challenges to the supply chain, such as the global semiconductor chip shortage.

And for 2022, the light-vehicle production forecast was cut by 9.3 percent, or about 8.4 million vehicles. IHS Markit also reduced its 2023 forecast, by 1.1 percent, just over 1 million vehicles.

IHS Markit now estimates output at 75.8 million vehicles this year and 82.6 million in 2022.

The revisions reflect the challenge the auto industry has faced as it grapples with one supply chain issue after another.