• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Sunday, June 15, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Cars

Ukraine crisis presents a risk for recovery of global light-vehicle sales

by Meghana Kandra
February 26, 2022 - Updated On March 1, 2022
in Cars, News
Reading Time: 2 mins read
0
Russia's invasion of Ukraine may pressure light-vehicle sales growth
TwitterWhatsappLinkedin

As Russia invades Ukraine it is forecasted that the global light-vehicle sales will be cut by 400,000 units, with total predicted sales as 84.4 million units. As the prices of oil and aluminum are increasing, this is expected to impact many industries all over the world for this year. Russia is one of the key suppliers in the world for metals used in automobiles- like Nickel and Palladium. Foreign auto manufacturers like Stellantis, Volkswagen, and Toyota have manufacturing plants located in the country.

You might also like

Larry Ellison Surges to World’s Second Richest, Overtaking Jeff Bezos and Mark Zuckerberg

Gavin Newsom Accuses Trump Administration of Spreading Fake Protest Images

India Considers Grounding Boeing 787-8 Fleet After Ahmedabad Tragedy

Russia's invasion of Ukraine may pressure light-vehicle sales growth
Image credits- CNBC

Furthermore, it is also to be noted that automakers within the country will possibly be facing challenges. At least a quarter of parts used in Russian-made vehicles are being imported from the US. Assembly plants could have trouble with their operations as sanctions are in place according to industry officials and analysts.

So far it has been unclear about whether it will be challenging. Because if Russian President Vladamir Putin were to retaliate against the West by cutting off palladium supplies, “automakers would have to find alternative supplies or they wouldn’t be able to build vehicles with internal combustion engines,” said Sam Abuelsamid, principal auto analyst for Guidehouse Insights, a research firm. Russia is the world’s third-largest supplier of nickel used in lithium-ion batteries. Russia provides around 40% of palladium used in catalytic converters used in ICE vehicles.

Alternatives

While other countries like South Africa and Zimbabwe also produce Palladium. However, the price of rare metals has been increasing recently due to an increase in demand. Last year in December palladium was at $1,600 an ounce. In recent times, on Wednesday it was at $2,400 an ounce. Such drastic price change adds up to $150 for regular vehicles and $200 for SUVs or other premium range vehicles.

Ultimately it brings down to automakers choosing to swallow the added cost or increase the price of the vehicle. Last year itself the prices of vehicles have been rising due to semiconductor chip shortage and other supply chain issues. If nickel supplies are constrained that could slow the production of the batteries used in electric vehicles. It delivers a blow to a major initiative in the US by the Biden administration — to have electric vehicles account for up to half of all new autos by 2030.

There are additional sources of nickel — Indonesia and the Philippines are the two largest — but demand and prices have been growing and automakers could face the same challenges as with palladium, according to Abuelsamid.

As the current crisis began, Stellantis had been increasing production of vans and other vehicles at a plant outside of Moscow, for export to the West. It was also planning to start exporting transmissions. But CEO Carlos Tavares said his company may have to rethink that strategy. “If we cannot supply the plant if that is the reality, we have either to transfer that production to other plants, or just limit ourselves,” Tavares said during an earnings call Wednesday.

Tags: AutomobilesBiden's administrationnickelPalladiumRussiaStellantisukraineUkraine and Russia war
Tweet54SendShare15
Previous Post

THE COINBASE CEO CLAIMS THE OWNERSHIP OF THE AD, LATER GOT CORRECTED

Next Post

Amazon’s partner Samara Capital plans $500 million India-focused fund

Meghana Kandra

Meghana studied PGD in Journalism, open university. She has more than five years of experience in content writing, from creative content development to online journalism. Electric vehicle enthusiast, engineer, and feminist.

Recommended For You

Larry Ellison Surges to World’s Second Richest, Overtaking Jeff Bezos and Mark Zuckerberg

by Rounak Majumdar
June 15, 2025
0
Larry Ellison Surges to World’s Second Richest, Overtaking Jeff Bezos and Mark Zuckerberg

Larry Ellison, the co-founder and chairman of Oracle Corporation, has made global headlines by becoming the world’s second richest person, surpassing tech titans Jeff Bezos and Mark Zuckerberg....

Read more

Gavin Newsom Accuses Trump Administration of Spreading Fake Protest Images

by Anochie Esther
June 15, 2025
0
Trump

California Governor Gavin Newsom has accused the Trump administration and the U.S. Department of Defense (DoD) of spreading disinformation in an alleged attempt to justify the military deployment...

Read more

India Considers Grounding Boeing 787-8 Fleet After Ahmedabad Tragedy

by Anochie Esther
June 15, 2025
0
Boeing 787-8

India’s civil aviation sector is in mourning following one of its deadliest air disasters in recent history. An Air India Boeing 787-8 Dreamliner en route to London’s Gatwick...

Read more
Next Post
Samara Capital logo mockup

Amazon’s partner Samara Capital plans $500 million India-focused fund

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?