Steel Markets
January 10, 2022
Wolfe Research Forecasts Better Year for Auto, Long-Term EV Boom
Written by Tim Triplett
After disappointing years in 2020 and 2021, the auto industry and its suppliers stand to enjoy a considerably better year in 2022, said Rod Lache, managing director and automotive analyst with Wolfe Research. “We think in the U.S. there are at least 10 million units of undersupply in the market, which represents pent-up demand and is very bullish for the future.”
Speaking during Wolfe Research’s 2022 State of Steel webinar last week, Lache noted that global auto production experienced a recession-like year in 2020 due to the coronavirus, followed by a no-growth year in 2021 due to the lingering virus crisis and a worldwide shortage of semiconductors. Industry data at the outset of 2022 shows vehicle prices rising sharply, reflecting pent-up demand and high levels of disposable income among American consumers.
