Manufacturing cuts, near-negligible discounts, and waiting sessions running into numerous months mark the festive season as chip scarcity made companies cut down wholesale activities.
The festival of lights is approaching, but over the past few months, wholesale operations for organizations like Maruti Suzuki, Honda, Kia, and Hyundai were in the dark because companies are facing difficulty in supplying chips.
On the other hand, some companies evaded the negative decline, possibly because of comparatively better supplies. Companies such as Tata Motors, Mahindra & Mahindra, and Toyota reported a rise in numbers.
Maruti Suzuki said they are lagging 2 lakh deliveries, and the company has been ramping up to boost its semiconductor in times of scarcity.
RC Bhargava, chairman of Maruti Suzuki, stated that the availability of semiconductors is crucial for the company to get back up quickly and continue its usual manufacturing schedules that have been pressurized for the last few months.
Maruti was not happy, so was Hyundai. They lamented on the persisting problems and blamed them on the global chip supply shortage. They said that the circumstance continues to be an obstacle and the outcome is lower manufacturing across the industry.
CEO of Mahindra’s automotive division, Veejay Nakra, stated that supply chain problems around chip-related parts remain dynamic, meaning the future could be uncertain.
There is a waiting period of up to six months on particular models and, those include models from Korean organizations such as Hyundai and Kia.
On the other hand, the demand for two-wheelers from major players like Hero MotoCorp remains a hassle because many consumers walk away from the market, owing to high prices of fuel and surging vehicle prices.
Federation of Automobile Dealers Association (FADA) requested all two-wheeler original equipment manufacturers (OEMs) to declare unique schemes for demand recovery in the entry-level (125CC) segment.
The chip shortage event has diminished automobile sales because dealers are not able to reach deadlines. That is because of a grave demand-supply mismatch, which resulted in long waiting periods.
The total vehicle retail sales for September 2021 dropped 5.27% on a yearly basis, according to the data. Compared to last year, sales declined 13.5% this past September. Overall, compared to 2019, sales dipped by 29%.
The festive season is around the corner, and it would be interesting to see the chip shortage crisis being overturned by companies as vehicle inventory with dealers has dropped.
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