Updated 1.50pm

Car importers are facing delays due to the global shortage of microchips and do not expect the industry to return to normal for at least another six months.

The Association of Car Importers Malta is urging anyone in the market for a new vehicle to delay their purchase until next year.

"Buyers need not panic as the purchase of a car is something long term and it would be wise to wait those few extra months," Deborah Schembri, Secretary General of the Association of Car Importers Malta, told Times of Malta.

Car making is one of the industries impacted worldwide by supplies of semiconductor chips failing to meet demand.  

Schembri acknowledged that “like all products requiring microchips, there are delays due to the global shortage”.

She said that car manufacturers were addressing the issue with the “utmost urgency” and that car production is increasing steadily.

“The delivery of new cars should be getting back to normal in the second quarter of next year,” she said.

Asked about an anticipated price hike once the cars return to the market, Schembri noted the global pandemic had left a “negative effect on prices”.

“But, again, the manufacturers are striving to maintain these, most especially for electric vehicles, plug-in hybrid EVs and low-polluting cars,” she said.

Car making relies on computer chips to control everything from windows to navigation systems.

The pandemic is one of the main causes of the global semiconductor shortage, which continues to squeeze the supply of microchips.

Some analysts predict a production shortfall of almost eight million vehicles by the end of the year as the situation drags on.

A tighter supply of new cars means consumers could expect not to find what they were after or not have much to choose from in some cases.

The dire forecast, internationally, is that it could take another one to two years before the automotive industry could catch up with the demand, with most automakers planning at least one pause in manufacturing to let the supply of microchips catch up.

The prediction is that, even once production ramps back up, it will take a while for supply chain issues to work their way through the system.

Mizzi Motors, the largest automotive group of companies in Malta, said its manufacturers are responding with urgency to the situation and are working hard to solve the delays they are experiencing.

“We can now confirm that the situation is set to improve for some of our brands as our order commitments are being fulfilled by our manufacturers,” the group said.

“We can also confirm that some of our brands currently do have stock and the ones that do not have stock planned in the upcoming months.”

ACIM: Book your car now

In a statement submitted following publication, the ACIM insisted that its advice for buyers to "wait those few extra months" did not mean that it was advising them to hold off their purchase.

"On the contrary, ACIM suggests that customers do not delay purchasing their new car and book their vehicles to take advantage of the generous government grant and avoid disappointment," the association said.

"Many new car importers have stocks of such new cars and manufacturers are racing to improve the supply chain to meet the increased demand.”