Global chip shortage continues to affect India’s auto sector – India Quartz

India’s auto sector, desperately looking to ride out the recession caused by the pandemic, has wrapped up another disappointing holiday season. And this time around, the global shortage of semiconductor chips shares the blame.

During the 42 days of India’s latest festive season, the auto retail trade across India registered a decline of nearly 18% from the same time last year, according to the Federation of Automobile Dealers Associations (FADA), an independent body.

We’ve had the worst festive season in the last decade. And the semiconductor shortage that was already a full-blown crisis showed its true colors… We were unable to meet customer needs as the SUV, compact SUV, and luxury classes experienced significant vehicle shortages,” said FADA President Vinod Gulati.

“On the other hand, entry-level cars have seen weak demand as customers in this segment continue to save money due to the healthcare needs of their families.”

Chip shortage and its impact on the auto sector in India

Microprocessors or chips are semiconductors that control critical commands such as airbag release, audio/video entertainment, navigation, a collision detection system, and remote air conditioning operation.

The global chip shortage started in 2020 with many countries imposing complete lockdowns in the wake of the coronavirus outbreak, hurting production and supply. Industry experts believe that this phenomenon can Goods until 2023.

she has Starting to influence India By late last year.

By December 2020, Bosch unit in India Already reported Which indicates its inability to meet the demand of the auto sector in the country. In the same month, Mahindra & Mahindra also said that its production and sales will be affected for the same reason.

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