No festive cheer for car cos due to chip scarcity – Times of India
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NEW DELHI: The global shortage of semiconductors has hit the car industry hard and led to severe shortages in output as supplies of electronics remains constrained. The semiconductor shortfall has impacted the industry — both in India and abroad — for almost one year now, and the situation has only worsened over the past few months.
Wholesale deliveries just days ahead of the auspicious navratras was down for the top companies, such as Maruti Suzuki, Hyundai, Mahindra, and Honda, indicating that customers will have to wait much longer to get access to new cars.
Maruti, the country’s top carmaker, said its factory output in October could be down by as much as 40%, this being yet another month of short supplies after it had to cut output by nearly 60% last month.
“Owing to a supply constraint of electronic components due to the chip shortage situation, the company is expecting an adverse impact on vehicle production in October,” it said in a filing on Thursday. On Friday, it said domestic passenger vehicles output was at 63,111 units in September against 1.5 lakh units in the same month last year. It said the shortfall was there despite the company initiating “all possible measures to limit the adverse impact”.
Hyundai, which saw a 34% decline in wholesale deliveries to dealers, also complained of shortages. “The global chip supply constraint has adversely affected vehicle production, resulting in low dispatches.”Companies have been trying to shore up electronics supplies, but have failed to do so as semiconductor makers have been providing higher dispatches to electronics companies — such as laptop and smartphone sellers — who have seen a strong rebound in demand after markets opened up across the world after removal of Covid restrictions.
Wholesale deliveries just days ahead of the auspicious navratras was down for the top companies, such as Maruti Suzuki, Hyundai, Mahindra, and Honda, indicating that customers will have to wait much longer to get access to new cars.
Maruti, the country’s top carmaker, said its factory output in October could be down by as much as 40%, this being yet another month of short supplies after it had to cut output by nearly 60% last month.
“Owing to a supply constraint of electronic components due to the chip shortage situation, the company is expecting an adverse impact on vehicle production in October,” it said in a filing on Thursday. On Friday, it said domestic passenger vehicles output was at 63,111 units in September against 1.5 lakh units in the same month last year. It said the shortfall was there despite the company initiating “all possible measures to limit the adverse impact”.
Hyundai, which saw a 34% decline in wholesale deliveries to dealers, also complained of shortages. “The global chip supply constraint has adversely affected vehicle production, resulting in low dispatches.”Companies have been trying to shore up electronics supplies, but have failed to do so as semiconductor makers have been providing higher dispatches to electronics companies — such as laptop and smartphone sellers — who have seen a strong rebound in demand after markets opened up across the world after removal of Covid restrictions.
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