New Delhi: Several months-long waiting period, production cuts and almost negligible discounts mark the festive season as semiconductor shortage has seen companies reduce bulk deliveries even in the month before Diwali.
Reflecting the gloomy trend seen in the past few months, wholesale distribution for companies such as Maruti, Hyundai, Honda and Kia fell once again as companies faced difficulty in sourcing semiconductors.
However, some managed to reverse the negative trend – perhaps due to relatively better supplies – and reported an increase in numbers, and these included Tata Motors, Mahindra & Mahindra and Toyota.
Maruti has said that it has a backlog of 2 lakh deliveries, and the company is taking steps to strengthen its semiconductor in times of shortage.
Chairman RC Bhargava said the availability of chips is important for the company so that it can quickly come back and resume its normal production schedule which has been under pressure for the past few months.
Hyundai also complained of problems, blaming the global semi-conductor supply disruption. It said the situation “remains a challenge, resulting in reduced production across the industry.”
Mahindra’s Automotive Division CEO Vijay Nakra said supply chain issues around semi-conductor related parts remain dynamic.
There is a waiting period of up to six months on some models, and these include Korean automakers Hyundai and Kia.
On the two-wheeler side, demand from big players like Hero MotoCorp remains a challenge as many consumers stay away from the market due to high petrol prices and increase in vehicle prices.
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