Microchip Shortage

How the Microchip Shortage Is Impacting EV Buyers

Microchips (also known as semiconductors) are an essential component in many of the products we rely on every single day, like our cell phones, computers, televisions, and even our cars. However, there is currently a worldwide shortage of microchips and it is hitting the automotive industry especially hard.

Supplies are low because of order cuts made during the pandemic and high demand from other industries. This shortage is causing many auto manufacturers to delay the rollout of new models and limit their vehicle production. So, how does this microchip shortage impact EV buyers in particular?

Supply Delays

The semiconductor industry is built-to-order, so microchip manufacturers need at least a 12-week lead time. On top of that, electronic companies are also cutting into the supply of microchips for their own manufacturing purposes. This causes a significant delay in the production of all vehicles as car manufacturers have to scale back the number of cars they are making.

The delay in production has led to longer waitlists and has affected the availability of all cars on the market. This is particularly difficult for individuals whose lease is up and need a new car, as well as people who need a car to get back to work. For those committed to buying electric, they may have to turn to used EVs or consider different models than they planned on. The roll out of many new EV models may be pushed back as the shortage continues, but many auto manufacturers are allowing consumers to pre-order vehicles in the interim.

Cars in a lot
Price increases on new cars


The microchip shortage also impacts vehicle pricing. Car manufacturers are reducing output and prioritizing more lucrative models. This means that the cars that do get manufactured and shipped to dealerships will most likely be more expensive models. If consumers want their new EV now, the only option may be to pay up for a pricier model.

Prices are also surging in the secondhand market as used cars are going for almost 15% more than they were a few months ago. This is not only bad news for used EV buyers, but also for new EV buyers since car manufacturers can base new car prices off of how much used cars are going for. While this means that many newer EV models might not be on the market as soon as originally anticipated, there are still many high-range options currently available for those unwilling to wait.

Get Involved

At Drive Clean Bay Area, we believe EVs are vital to a cleaner future, whether they are for driving, towing, or outdoor needs. We host regular events to keep you informed of the latest vehicles, innovations, and financial incentives, as well as offer an EV Buying and Driving Guide.

Our EV Discount Program will run in November and provide limited-time savings events with discounted pricing on a variety of new battery electric and plug-in hybrid vehicles.

Sign up now to get notified when we announce this year’s EV Discount vehicles!