Despite the global market gradually stabilizing, the semiconductor industry continues to encounter challenges. As a result, there is a significant scarcity of semiconductor supply in the automobile industry.
Experts predict that customers who are eagerly awaiting car deliveries during the holiday season this year might face disappointment. This is primarily due to companies reducing production as a result of chip shortages, which in turn has led to significant delays in car delivery times. Furthermore, there is an expectation that the cost of automobiles could potentially increase in the months ahead.
Over the past few months, a number of well-known car manufacturers such as Maruti Suzuki, Hyundai, Mahindra, and Toyota have increased their prices. These companies claim that the price hikes are a result of cost overruns. Additionally, there is a shortage of semiconductors, which has led to higher costs for the automobile industry. Regrettably, the festive spirit might be dampened as we anticipate delays in deliveries during the months of November and December. Customers who are eagerly awaiting their cars may have to wait a few more months.
The delay in deliveries will persist until 2023, when the chip supply returns to normal. Maruti Suzuki, the country’s largest car manufacturer, has scaled back the production of passenger cars. Additionally, the company has witnessed a decrease in car sales in September 2021. Regrettably, October does not hold any prospects for improvement, and this is also identified as the primary factor behind the chip shortage.
Experts predict a decrease in car sales during November and December. Many customers who intended to purchase a car this year might delay their plans until the following year. Additionally, it is anticipated that car companies will not provide enticing discounts during festive seasons this year. The report reveals that prominent figures from Mercedes, Toyota, BMW, Volkswagen, and other companies have expressed their belief that semiconductor shortages will continue until 2023.
The semiconductor industry’s inability to catch up with the return to normalcy has resulted in losses for automobile companies. Numerous car selling companies, including Maruti Suzuki and Hyundai, experienced a decline in sales during September. Maruti’s sales plummeted by 57 percent, while Hyundai’s sales dropped by 34 percent. Consequently, the market share of these two companies has also decreased to 34 percent and 17.80 percent respectively.
Read more: Read this carefully before buying a new Car
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