Longer Wait period for New Cars due to Shortage of Chips

Production at factories across brands, have been impacted due to shortage of semiconductor hence the waiting period would be longer, Eventhough, everyone is on a buying spree because of the festive period in India. The good news is, the sales has been picking up, after the 2nd wave of Corona virus blues, companies became handicapped and they are unable to service the order, which has been received by them, due to critical semiconductors shortage, this has resulted in massive shortfall at dealerships.

As per the wholesale delivery data relating to cars dispatched to dealerships, it has been found that, there has been a decline in the volumes with below par production levels at factories of companies such as Maruti Suzuki, Tata Motors, Hyundai and Mahindra.

As per the numbers released by the industry body Siam, small car as well as sedan deliveries in the month of September, a month before the beginning of the festive sale period, it stood at 64235 units, nearing to 61% fall over the 16 lakh units dispatched in the same month previous year. For both, SUV's and UVs, there has been fall of nearing 9% on total dispatches of 87,720 units against 96,633 units in the month of September previous year.

The waiting lists for both, cars as well as SUV presently range between a few weeks and over a period of 6 months for numerous models. These include a few of the popular ones, such as Kia Seltos, Hyundai Creta, Mahindra Thar and Maruti Swift.

Maruti, the nation's top carmaker stated that, its factory output in the month of October could be low nearing to 40%, this being yet, another month of short supplies after it had to cut output to nearing to 60% in the month of September We also find, numerous members have curtailed the productions plans, coupled with festive demand, this has led to long waiting period for the customers on popular models, MD & CEO of Maruti Suzuki, Kenichi Ayukawa, who is also president of Siam, stated. Even the two wheeler market is much under pressure, not much due to semiconductor shortage but because there is not much demand in this sector.