2020 Vehicle Launch Delays Reach 50%+

Delays: EVs, ADAS, Software Blame.

Since 2020, car manufacturers have faced numerous challenges in completing their vehicle releases promptly. With the switchover to electric cars and the far-reaching effects of the worldwide crisis wreaking havoc on the supply chain, delays for new car models have become an ever-growing concern.

A recent report from PwC Consulting uncovered that 34 percent of automobile unveilings were postponed in 2023 due to manufacturing hurdles. Another 21 percent were pushed back for “other reasons,” amounting to over half of the new cars anticipated to be released this year. PWC reviewed mechanical setbacks – workforce limitations, following quality standards, and supply chain complications – by evaluating the true start date of production to its projected commencement.

Analysis performed by professionals at PricewaterhouseCoopers has uncovered that production holdups for car-makers can cost them around $200 million a year. This could amount to $30 to 50 billion worth of losses for the entire auto industry. Last year, only 5% of initial releases were met with delays in manufacturing, and another 18% experienced delays from alternate causes. However, 2017 witnessed no delays during launching and only 13% of issues linked to other sources.

Despite the marginal increase in postponements as a result of the pandemic, automakers had an impressive showing in 2023, as 45 percent of their introductions made it to market on schedule, the most since 2019, where 50 percent arrived punctually. 2022 proved to be more arduous for carmakers, with merely 30 percent arriving as initially outlined, while 39 percent experienced postponements. 2018 saw 77 percent of launches occurring according to plan and 2017 was even better, boasting an 87 percent completion rate on schedule.

The analysis identified a multitude of contributing factors behind the delays. Chief amongst these were the production of new electric cars, sophisticated driver assistance systems and software technology. Car manufacturers have been juggling their resources to keep afloat in this continually evolving industry, in addition to investing in novel businesses.

Redressing the situation to a period without any production postponements for fresh-out-of-the-factory vehicles seems implausible. According to PwC’s study, production slowdowns may expand by 2026 as car companies have intentions to present nearly double the amount of electric cars than currently. The consultancy firm foresees that between now and 2026, up to 40 percent of these launches could be delayed.

Source: PwC Consulting via Automotive News


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