PRAGUE, Reuters – Skoda Auto, a Volkswagen subsidiary said Monday that it would make around a quarter million fewer vehicles than expected this year because of a lack of semiconductor chips.

The company stated that it expects the chips shortage to stabilize this quarter and slowly ease in 2022’s second half.

As a result of supply chain disruptions in the global automotive industry and growing demand for electronic products, carmakers worldwide have seen their output suffer. This has led to a severe shortage of critical components needed to power electronic devices.

Skoda Czech, which is based in Prague, restored production on Sunday. But the company indicated on Monday that production would be reduced over the following weeks.

It stated that the company expected to be unable to make approximately 250,000 cars by the end this year because of missing parts.

It stated that the shortages had started to have an effect on production during the third quarter.

Skoda stated that “the company expects that the supply situation of semiconductors (will stabilise again starting the fourth quarter of 2021) and then (will be) slowly easing in 2022.”

Tata Motors (NYSE:) Ltd., Jaguar Land Rover’s owner, stated Monday that the company continues to suffer from the chip shortage. Skoda parent Volkswagen (DE:) also warned last week about the effects of this shortage on their business.[

Skoda’s Chief Executive Thomas Schaeffer said in a newspaper interview published on Monday that Skoda expected to be producing at “almost full capacity” in November and December after the previous drops, if parts are available.

The company said it delivered 700,700 vehicles globally in the first nine months of this year, down 2.9% year-on-year, while deliveries outside China rose 8.5%.

Skoda reported revenue of 13.3 billion euros ($15.39 billion) for January-September, up 10.7% from a year earlier, and said operating profit nearly doubled to 900 million euros. Production was disrupted during periods last year due to coronavirus-related lockdowns.

Earlier this year the carmaker said it had tens of thousands of cars in stock that were nearly finished but were awaiting chips. Dealerships have reported months-long waits for new cars.

($1 = 0.8641 euros)