Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

German carmaker Volkswagen’s Mexico unit is set to become operational this week following output cutbacks due to the ongoing semiconductor shortage worldwide. 


Volkswagen de México will start production of the group’s Jetta, Taos and Tiguan models on different dates. The carmaker’s statement follows a general expectation in the global automotive industry that the ongoing chips shortage may ebb in H2 2021. However, the company has hinted that overall production may be affected.


The demand for semiconductor chips continues to increase as vehicle manufacturers target a phased transition to electric line-ups. Volkswagen plans to become completely carbon neutral in Europe by 2035 and by 2050 all its plants will stop combustion engine production, according to media reports on Jun 28.


Volkswagen Europe plans to have 70pc of its sales share in electric vehicles (EVs) by 2030. The group had also forecasted a 50pc sales target of EVs in the US and China in the same year.

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