The primary factor impacting the supply of new cars is a global scarcity of semiconductors, commonly referred to as 'chips.' These chips are essential components in a wide range of electronic devices, including washing machines, home computers, televisions, and, of course, new vehicles.
Each new car incorporates approximately 1,500 of these chips, serving as the vehicle's 'brain.' However, the high demand for electronic devices during the COVID-19 pandemic has led to a shortfall in semiconductor production. While the chip supply is gradually recovering, most manufacturers currently grapple with substantial order backlogs. It is expected that extended lead times for new cars will persist at least throughout the remainder of 2023 as manufacturers work to clear these backlogs.