No Festive Cheer to Auto Industry Due to Shortage of Chip Shortage
Chip shortage has only become worsen over the past few months.
There is a global shortage of semi-conductors, this has hit the auto industry very badly and it has caused severe shortage with regards to output, the reasons being, the supplies of electronics have remained constrained. The semiconductor shortfall has impacted the car industry, both in India as well as abroad for nearing to one year now and the situation has only become worsen over the past few months.
Wholesale deliveries just days ahead of the auspicious Navratras were down for the top companies such as Hyundai, Honda, Mahindra and Maruti Suzuki, thus, indicating that customers would require to wait for much longer period in order to access to new cars.
Maruti is the nation's top carmaker, the above company has stated that, its factory output in the month of October may be down by, as much as 40%, this could be another month of short supplies after it had to reduce output by, nearing to 60% the previous month.
Owning to a supply constraint of electronic components because of a chip shortage situation, the company is expecting an adverse impact with regards to vehicle production in the month of October, it is stated in a filing on Thursday. On Friday, the company has stated that, its domestic passenger vehicles output was about 63,111 when compared 1.5 lakh units last year, in the same month. It has stated that, there exists shortfall even though the company has been taking all possible measures to reduce the adverse impact.
The Hyundai Company has witnessed nearing to 30% decline in wholesale deliveries to dealers, also they have complained of shortages. The global chip supply constraint has adversely affected vehicle production, thus resulting in low dispatches, companies have been trying hard to shore up electronics supplies, but they have failed to do so, as semiconductors makers have been offering higher dispatches to electronics companies, which include laptop and Smartphone sellers, who have witnessed strong rebound in demand after markets have opened up across the world after removal of Covid Restrictions.