Jaguar Land Rover has become the latest vehicle manufacturer to warn that the global semiconductor shortage is getting worse and this will impact on vehicle production and sales in the months ahead.

In a statement filed with the Indian stock exchange last week by Tata Motors, the parent company of Jaguar Land Rover, the company said, "The chip shortage is presently very dynamic and difficult to forecast. The broader underlying structural capacity issues will only be resolved as supplier investment in new capacities comes online over the next 12 to 18 months, and so we expect some level of shortages will continue through to the end of the year and beyond."

Many other car makers including Nissan, Volkswagen and Hyundai have also highlighted the issue saying that dwindling stocks of semiconductors will result in much lower new vehicle sales this summer, putting a brake on the anticipated post lockdown recovery.

Speaking on the shortage, Jamie Hamilton, automotive director and head of electric vehicles at Deloitte said, “The ongoing global semi-conductor shortage has had a direct impact on consumers with manufacturers unable to fulfil orders in a timely manner, especially on the less popular models they have had to deprioritise. The ripple effect of this shortage has seen unusual activity in the used car market. Demand is high, but the limited availability of new cars means that there are even fewer used cars coming onto the market.”