From soaring energy prices to shortages of nickel and neon, that the impact of Russia’s invasion of Ukraine will be felt throughout the car industry for years to come seems certain, even in the best-case scenario of a grudging peace agreement.
Most commentators are focusing on detailing price swings, interrupted parts supplies and the impact of the loss of access to precious metals and minerals, but the broader picture suggests that the war could act as a catalyst for changing the make-up of the car industry in more fundamental ways.
Pre-invasion, car buyers were already facing price rises of 10%-plus this year, based on the rising cost of energy and materials. That was on top of the fact that supply shortages have meant limited discounts are available (US data suggests average transaction prices rose 18.5%
