passenger vehicle industry is set to lose 500,000-600,000 units in production
and more than $5 billion in revenue this fiscal year due to the global shortage
of semiconductors, say industry executives.
beginning of the financial year in April, automakers have suffered a production
loss of 300,000-350,000 units till the end of October because of the shortage
of the microchips that are a key component in new-age vehicles. The production
loss also resulted in an abysmal festive season for the industry. While the
supply scenario for chips has become better now, with Malaysia resuming
supplies, vehicle makers are still expected to lose 250,000-300,000 units in
the second half of this fiscal year 2022.
Maruti Suzuki is set to lose about 20% of its annual output, or 310,000 units,
this fiscal year, resulting in a revenue loss of $2.2 billion (based on the net
realisation of the September 2021 quarter). Suzuki Motor, the Japanese parent
of the Indian market leader, has guided investors that it is set to lose
370,000 units outside of Japan.
Swiss brokerage, 85% of this volume loss will be for Indian operations. Maruti
Suzuki had stated that the company had lost 116,000 units in the fiscal second
quarter due to the shortage of chips.
Mahindra suffered a production loss of around 32,000 units in the
September quarter due to the chip shortage. As a result, the auto industry was
sitting on its lowest inventory, enough to meet less than two weeks’
deliveries, ahead of the peak festivities as against the usual six weeks. As
the season concluded, the industry had more than half a million customers
waiting for the cars and SUVs they had booked.
The Economic Times