New Delhi
Federation of 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.
Vinkesh Gulati, 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.
Gulati noted 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.
The auto 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.
FADA’s outlook remains a mixed bag with PVs witnessing demand-supply mismatch and two-wheeler segment facing a demand crunch.
FADA represents 15,000 automobile dealers having 26,500 dealerships across India.
Source – Moneycontrol
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