The semiconductor supply rebound is set to accelerate vehicle deliveries
By SG Fleet | 25 July 2025

Vehicle wait times have tested everyone’s patience over the last few years. It was brought on by a perfect storm of global disruptions, and the delays affected everything from personal vehicles to business fleets. And all of it pivoted around semiconductors. Recently, there have been some reassuringly strong signs that the tide is turning, though. This could be very good news for anyone looking to secure a company car, upgrade their fleet, or manage their renewal cycles more effectively.
Why do semiconductors matter?
Virtually every modern vehicle depends on semiconductors. They’re tiny chips that control engine timing, fuel efficiency, safety systems, and even touchscreen displays. Your average electric car will probably have over 3,000 of them.
When global supply chains were hit by COVID-19 shutdowns, the demand for personal electronics skyrocketed. Because of this, semiconductor production moved in the direction of consumer tech just as vehicle manufacturers cut their orders.
By the time demand bounced back, the auto industry found itself at the back of a pretty long queue. And because no original equipment manufacturer (OEM) can build a vehicle without them, the ripple effect of the delays hits every part of the pipeline.
2025 has seen a shift in the market
Fast forward to 2025, and we’re able to be cautiously optimistic. Looking at some of the more recent analyses, manufacturers are largely positive about the second half of this year. Some key players in the automotive sector have invested heavily in capacity and capability.
Micron Technology recently announced billions in expanded production and packaging infrastructure across the US. Moves like this aren’t going to be an overnight fix, but they do show long-term confidence in the rebound.
More importantly, it’s not just production that’s improved. OEMs have become more agile, which means they’re better at managing allocation, prioritising popular models, and working more closely with tier-one suppliers to keep vehicle pipelines moving.
What does this mean for vehicle deliveries?
The knock-on effect is already being seen in factory lead times. In early 2023, it wasn’t unusual to wait up to 12 months or more for certain cars, especially new hybrid and EV models. According to industry data, the average order-to-delivery times have dropped significantly for many models, with the rest of 2025 set to see faster movement across the board.
In practical terms, this means better availability for company car schemes and a greater degree of confidence in delivery forecast times.
It’s an opportunity for fleet planning
This is a good moment to reassess your fleet management plans. If orders have been paused or delayed in previous years, there’s now a bit more breathing room to make strategic decisions about vehicle mix and term lengths.
Shorter lead times also open up more flexibility around EV adoption. For businesses with ESG goals, or any that are planning low-emission zones into their long-term strategy, improved access to electric and hybrid models neutralises one of the biggest barriers to change.
Even models that previously had year-long queues are seeing reduced wait times in most categories. That means fewer compromises when it comes to spec or model choice.
Semiconductor predictability saves you money
Long delays often lead to holding onto vehicles beyond their optimal replacement point, which increases maintenance costs and downtime risk. When you’re able to cycle vehicles more reliably, you get closer control over your costs, and you can plan more clearly for the future.
In some cases, it also helps offset higher upfront vehicle prices.
Semiconductor shortages contributed to price hikes in recent years, and improved production and delivery rates can help level things out in the longer term. A better supply of new vehicles also strengthens used stock availability, easing the pressure on used prices, too.
The response of OEMs
Most OEMs have adapted quickly to the new normal. Lots of them now build in more flexibility to their production models, which means more time focused on the core trim levels and a smaller number of variations per model. Overall, we’ve seen that this has helped improve production efficiency and cut waiting times.
Some OEMs have also shifted to building vehicles with placeholders for missing features, like in-dash chips or infotainment systems, which are then fitted later at dealerships. It’s far from perfect, but it’s helped keep deliveries moving and meant more customers are kept on the road.
A word of caution
While the picture is improving, the situation isn’t fully back to normal. A few models and drivetrains are still in critically short supply, especially for high-spec EVs or niche vehicles. Geographic factors also play a role. For example, availability in the UK might differ from other regions depending on how manufacturers allocate stock.
Need to get vehicles on the road faster?
At SG fleet, we help businesses and organisations get the vehicles they need without the long wait. We work closely with OEMs and suppliers to unlock faster delivery timelines and offer flexible solutions to suit every fleet size.
With ultra-flexible, short and medium-term options like Litelease, you can scale your fleet up or down at a moment’s notice, avoid long-term commitments and free up capital for what really matters to your business.
From company car schemes to full-service fleet management, our team can help you find the right vehicles at the right time. So, if you want to make sure you're not stuck waiting for your next vehicle, then get in touch with us today.
FAQs
What’s causing the improvement in vehicle delivery times?
Investment in chip production and better coordination between manufacturers has helped ease previous bottlenecks.
Are electric vehicles still hard to get hold of?
Some models are still in high demand, but many EVs now have shorter lead times than they did in 2022 or 2023.
How can businesses plan around remaining delays?
By staying flexible with model choices, trims, and specs and factoring realistic timelines into procurement planning.
Do shorter delivery times affect pricing?
In some cases, better availability has helped stabilise pricing, but this depends on the specific make, model, and market demand.