UPDATE 1-German auto sector to get better slowly in 2nd half just after pandemic hit – VDA

(Provides 2021 forecast, detail)

BERLIN, Jan 26 (Reuters) – Germany’s car business association stated on Tuesday it was optimistic for a restoration in the second fifty percent of the calendar year after getting impacted by the coronavirus pandemic, but warned the industry’s troubles had been challenging.

“We are cautiously optimistic for the next 50 % of the yr, that we will see an upturn and that there will be some catch-up results,” VDA President Hildegard Mueller informed ZDF tv.

The business has been strike hard by the closure of shops and showrooms and restrictions all over the entire world to suppress the spread of the novel coronavirus since early 2020.

A world-wide scarcity of semiconductors that has compelled automakers to shut assembly strains will slow the industry’s recovery, as analysts see the chips lack persisting for as extended as six months.

Mueller stated she did not see a small-expression repair for the semiconductor bottlenecks.

The association expects the German passenger automobile sector to increase by about 8% this calendar year to 3.15 million cars, but product sales will remain below the pre-disaster amount of all-around 3.5 million automobiles, it extra.

“There is no basis for all-obvious,” Mueller afterwards told journalists at its yearly meeting on Tuesday.

Passenger auto product sales in Europe are found increasing by 12% to 13.4 million automobiles and by 9% in the U.S. this year, VDA said.

The Chinese market will by now exceed pre-pandemic revenue in 2021, VDA said, forecasting an yearly progress of 8% to 21.4 million cars.

Muller claimed the German automobile industry’s shift to electro-mobility and digitisation ongoing despite the pandemic, with all over 150 billion euros invested in future technologies by 2025.

Reporting by Riham Alkousaa, modifying by Kirsti Knolle and Bernadette Baum