Blame it on the flea crisis

[ad_1]

After gradually emerging from the pandemic blues, the auto industry is now battling another battle: the shortage of chips. Like the rest of the automotive industry around the world, India’s automotive industry is also struggling to cope. Just before the holiday season, the auto industry is facing a depressed state of mind due to the semiconductor shortage it faces.

Maruti Suzuki baleno

1197 cm3 | Gasoline | Manual

₹ 5.58 Lakhs * from

Maruti Suzuki Ertiga

1462 cm3 | Gasoline | Manual

₹ 7.59 Lakhs * From

Maruti Suzuki vitara-breeze

1462 cm3 | Gasoline | Manual

₹ 7.34 Lakhs * From

(Also read: Your Favorite Car May Be Delayed for Months: Why Festive Joy Can Be a Frown)

Consumers are also negatively affected by this shortage of chips. While they are forced to wait long periods for their reserved vehicles, consumers also pay more for the vehicles. In addition, the freebies that are typically given by automakers and dealerships every holiday season to attract buyers are gone this time around, PTI reports.

The auto industry currently has nearly five lakh orders awaiting delivery, according to the report. Shashank Srivastava, Senior Executive Director (Marketing and Sales), Maruti Suzuki India, said the demand metrics reflected in the number of bookings are very good, but the supply is a bit reduced due to the chip shortage. “This is the reason why the number of reservations has accumulated but the supplies have not arrived,” he added.

He also revealed that Maruti Suzuki alone had around 2.20 lakh of backlog bookings delayed due to the chip shortage. The problem of delivery delays did not only get worse in October, but has grown since August. Srivastava also said the festive discounts and great deals will be very low key this time around due to supply chain issues.

Auto sales across India typically peak during the holiday season, especially around Navratra and Diwali. Despite the positive and optimistic consumer sentiment, the festive discounts are also helping to boost sales. In recent times, the demands for personal mobility have contributed even more to the surge in demand. However, the chip shortage and its impact on vehicle production is having an impact on sales.

Maruti Suzuki reportedly registered 3.35 lakh units of inventory on October 1 last year, which was reduced to 1.75 lakh units on the same date this year. It is still lower than the number on September 1, when inventory stocks were 2.25 lakh units.

Rajesh Menon, Managing Director of SIAM, said that due to severe semiconductor shortages faced by Tier I and II component suppliers, automakers face parts supply constraints. These include critical parts such as electronic engine control units, keyless entry, ABS systems and infotainment systems.

[ad_2]