The automotive industry presumed they were higher delivery priority than they really were. By volume they were not thus they had lower priority when things got squeezed.
The auto industry also had unreasonable chip reliability demands - physics doesn't care that they wanted 30-year life while also having 7-10 nm CPU performance - you can NOT HAVE BOTH!
IoT is primarily NOT 7-10 nm performance nodes - AVRs and many ARMs are not at that level - you can get by with larger geometries which can be made on older processes. So not so much shortage issues.