Automobile Dealers Associations (FADA) warned that the chip shortage could ruin
the passenger vehicle (PV) sales this festive season. Automakers are facing
production challenges and struggling to supply adequate vehicles to dealers.
President, FADA, stated that auto dealers are facing the most challenging phase
of their business career due to the COVID-19 after-effect. He added that until
last year demand was a challenge. Now, there is high demand for PVs, but the
global shortage of semiconductors is affecting supply.
that customers might not get lucrative schemes during this year’s festive
season as OEMs are struggling due to the unavailability of semiconductors and ABS
chips, shortage of containers and high metal prices.
industry has increased its usage of semiconductors due to technological
advancements and newly added features such as Bluetooth connectivity and
driver-assist, navigation, hybrid-electric systems and engine control unit.
FADA reported a
39% YoY rise in PVs, 97% surge in CVs, 80% rise in three-wheelers and a 7%
increase in two-wheeler sales in August. The total sales across categories
increased by 14% YoY.
remains a mixed bag with PVs witnessing demand-supply mismatch and two-wheeler
segment facing a demand crunch.
15,000 automobile dealers having 26,500 dealerships across India.
Source – Moneycontrol