Car parts prices are going up and higher than ever before and it’s not helping your wallet or bank account in any way.
Automotive Accessories Traders Association of Malaysia president, Lim Bee Choo, stated that spare part prices have gone up by 25%. The reasoning? Supply shortages, particularly for cars and manufacturers from Europe.
Two global conflicts add up to the tally
And it’s not just us, it’s everyone else around the globe. The supply chain for car parts has been greatly affected due to two very critical situations – the Russia-Ukraine conflict as well as the US-China trade war.
In retaliation to the European Union sanctions, Russia has suspended its energy supply to the continent, and without energy, some factories are unable to operate. That’s just one factor.
China lockdowns affect Japan & South Korea
The other matter is related to COVID-19 and how China has been dealing with it. Strict lockdowns in the country meant that factories that supply parts for some high-profile Japanese and South Korean brands are shut down.
And since a lot of these things are made in China, a short stoppage in production has a greater effect than one might imagine. This has led to the rise in prices, which some have gone up to 60% if you ask Malaysia Automotive Prosper Entrepreneurs Association president, Mohd Karim A. Rahman.
According to Mr. Karim, you can expect to pay between 10-15% more for tyres, engine oil, and lubricants at present. Timing is also an issue as lack of volume also meant that it might take longer for some parts to arrive upon ordering.