NEW DELHI: Semiconductor shortages have come to haunt the Indian car industry ahead of the festive season, as companies report slump, and even fewer deliveries to dealerships in August, compared with last year’s. He dispatched in the same month.
Chip supply crunch has disrupted production schedules of several companies such as Maruti Suzuki, Mahindra & Mahindra and Tata Motors, and companies have said they may be forced to go slow on shop floors despite healthy demand. Used to be.
The country’s top carmaker Maruti reported a nine per cent drop in bulk deliveries, which clearly highlights the problems being faced by the automakers. The company had recently said that it has a pending customer backlog of over 1.5 lakh cars, but chip shortage is affecting production.
“Due to lack of supply of electronic components due to semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in both Haryana and its contract manufacturing company Suzuki Motor Gujarat in the month of September. Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume at both the locations could be around 40% of the normal production,” Maruti has said.
Tata Motors grew 51% on a month-on-year basis, though the company has seen a seven per cent drop in deliveries on a month-on-month basis due to the shortfall. “Semiconductor shortages are having an impact on the auto industry globally. The recent lockdown in East Asia has worsened the supply position and hence Tata Motors has been forced to reduce production and offtake volumes in the coming months,” the company said, adding that the situation remains fluid. We will continue to work to minimize the impact. From this and on, we aim to meet our customers’ orders through an agile, multi-pronged approach.”
Tata Motors said that to effectively tackle the problem, it is in close engagement with its extended supply chain partners, procuring chipsets from the open market, using alternative chips and managing model and trim mixes. has been
Mahindra & Mahindra also complained about the issue, saying that the supply of semiconductors remains a global issue for the auto industry.
On the two-wheeler side, healthy demand generation at the retail level remains difficult, and thus supplies to dealerships of companies like Hero Moto and Honda 2 Wheelers were disrupted. Hero’s sales fell 24%, while Honda’s was down 6%.
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