(Reuters) – New vehicle sales are likely to increase next year in America, due to increased demand after automakers cut production in 2021 in response to supply chain issues caused by pandemics and shortages of semiconductors. Edmunds, an industry consultant said Thursday.

According to the online car shop guide, 15.2 Million New Cars will Be Sold in 2022. This is 1.2% more than its 2021 estimate.

General Motors (NYSE 🙂 has had to cut production because of shortages in semiconductor chips, which control all aspects of the vehicle, including heated seats and infotainment systems. In some instances, they have even built vehicles without certain features.

Edmunds executive director for insights Jessica Caldwell stated that although sales have declined since spring, consumer demand for new cars continues to be strong. This will help to increase deferred orders next year.

Edmunds stated that it expected the average vehicle transaction price to reach record levels, having risen to $45,872 from $39984 in November.

Edmunds predicts that the U.S. market for electric vehicles (EVs) will grow and surpass 600,000. Units in 2022. He also predicted that Ford Motor (NYSE.) Co’s F-150 Lightning would be “the champion of this segment.”

Edmunds is a guide for car buyers, guiding them from research to purchasing.

IHS Markit data company on Thursday stated that the U.S. will see a rise in new vehicle sales to 15.47 million units in 2022, up from 15.07 million vehicles in 2021. According to IHS Markit, mainland China’s sales of new cars will rise to 26,92 Million in 2023 and 28.99 Million in 2024.