Expect 60% increase in automotive spare parts, driven by shortage of raw materials

It seems fresh produce is not the only item that is going up in price. The automotive industry is set to see prices for spare parts soar as high as 60 percent in the coming months. This is due to high demand for spare parts, shortage of raw materials to produce the parts, and rising shipping costs.

As it is, prices for locally produced automotive spare parts have been gradually increasing 10 to 20 percent for months now. Meanwhile, parts for motorcycles, regardless of whether they are imported from overseas or locally produced, are set to increase 20 to 30 percent.

The price increase is mainly due to a shortage of raw materials like iron, aluminium, and plastics as countries were forced to pause production for close to two years.

Prices of tyres are also affected by the raw material shortage. Tyre prices have experienced a 15 percent increase in the previous few months.

It also doesn’t help that shipping prices due to the shortage of available ships as industries ramp up post Covid-19 lockdown

Industry players are expecting the automotive spare parts inflation to stay until at least Chinese New Year 2022.

According to reports from China Press and Utusan Malaysia, prices for spare parts started increasing when the country entered the various phases of the National Recovery Plan (NRP). Demand for spare parts also shot up when the interstate ban was lifted.

Car owners have flocked to repair and spare parts shops to have their cars fixed up in preparation to travel across state borders for their long-awaited holiday.

For now, service centres and spare part shops can only ask for their customer’s patience or find an alternative such as refurbishing parts to reuse until a new unit is available.