Speed breakers such as the third COVID-19 wave triggered via the spread of the Omicron variant in India as well as rising commodity prices might decelerate the automobile industry's recovery.

Manav Kapur, Executive Director, Steelbird International, shares four critical business abilities that automotive enterprises should acknowledge and execute to manage supply chain issues in future.

India’s 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.

The auto components industry is poised for a 10- 15 per cent growth in fiscal 2022, following a 3 per cent slide in FY21 during peak Covid pandemic, according to Sunjay Kapur.

With the ripple down effect of declining automobile sales, the forging industry is facing the heat with a sharp decline in demand.

The ongoing chip shortage is likely to moderate passenger vehicle sales growth to 11-13% this fiscal, down from the earlier volume growth forecast of 16-17 per cent, delaying the industry recovery as the waiting period is increasing amid strong demand due to production curbs, says a Crisil report.

Supply chain issues may arise with a magnesium shortage in China and the ongoing global microchip shortage heavily impacting auto industry production, including for General Motors.

The domestic appliances and consumer electronics industry, is facing shortages in components such as semiconductors and chips, said industry body CEAMA.

An ongoing global shortage in semiconductors is on track to cost the world’s automakers $210bn in lost revenue this year, almost double that of previous estimates.