New Delhi: The lack of semiconductor global has hit the car industry hard and causes severe shortages in output because electronic inventories remain limited.
Semiconductor deficiencies have had an impact on the industry – both in India and abroad – for almost a year now, and the situation only deteriorates over the past few months.
Wholesale shipping only a few days before the profitable navratras down for top companies, such as Maruti Suzuki, Hyundai, Mahindra, and Honda, shows that customers have to wait longer to get access to new cars.
Maruti, the country’s top car maker, said the factory output in October could fall by 40%, this is another month of short supply after it must cut output with almost 60% last month.
“Because of the supply constraints of electronic components because of the situation of lack of chip, the company expects a bad impact on vehicle production in October,” he said in submission on Thursday.
On Friday, it was said that domestic passenger vehicle output was at 63,111 units in September against 1.5 lakh units in the same month last year.
It was said that the drawback was there even though the company initiated “all possible steps to limit the adverse effects”.
Hyundai, who saw a decline of 34% in wholesale shipping to dealers, also complained of deficiencies.
“The constraints of global chip supply have affected vehicle production, producing low shipment.” The company has tried to sustain electronic supplies, but failed to do so because semiconductor makers have provided higher shipments to electronic companies – such as laptops and sellers of smartphones – who have seen a strong rebound in demand after the market opens throughout the world after removal of covid restrictions.