Semiconductor shortage hits new vehicle deliveries

Hyderabad: If you have plans to buy a new vehicle – either a two-wheeler or a four-wheeler – then you might have to wait for at least two to three months till you can get hold of the vehicle of your dreams. As automakers are starting at a semiconductor shortage, it is impacting dispatches to […]

Hyderabad: If you have plans to buy a new vehicle – either a two-wheeler or a four-wheeler – then you might have to wait for at least two to three months till you can get hold of the vehicle of your dreams. As automakers are starting at a semiconductor shortage, it is impacting dispatches to dealers from factories. And this, in turn, is causing a delay by dealers in handing over the vehicles to customers.

Though the production has improved in the factories in the last four to five months, the situation is yet to return to normal, said Vinkesh Gulati, president of Federation of Automobile Dealers Associations (FADA) told ‘Telangana Today’. “The companies are unable to ramp up production due to the global shortage of semiconductors. This is impacting the waiting period which is huge and there is delay across models. When compared to four-wheelers, the waiting period for two-wheelers is less. We anticipate at least six months for the production side to improve,” he said.

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Most auto dealers in Hyderabad also pointed towards a delay of at least three to four months in delivering vehicles. The majority of them also opined that the waiting period is longer in high-end cars and premium two-wheelers when compared with entry-level cars.

“The global semiconductor shortage has impacted our car delivery time with some models having a waiting period of almost three to four months. This is also true for premium-priced two-wheelers. If the demand is 100 then the supply is only 50,” says Yalamanchili Ramu, MD, Orange Auto.

Adarsha Automotives director Satyanarayana Goud informed that only specific models have a delay of one to two months due to the production constraints caused by chip shortage. “We are seeing delays only in top-end cars and the original equipment manufacturers (OEMs) have assured us that things will get streamlined in the next two to three months,” he said.

Saboo RKS Motors also confirmed that there is a lag in the delivery of certain variants. “Those cars that have more technical features like an infotainment system and others are seeing a delay as they depend heavily on semiconductors. We are seeing a two-month delay,” says Kiran PS, business head, RKS Motor. The dealers expect the waiting period will return to normalcy – that is cars will be available immediately – in the second half of 2022 as the global situation is expected to improve by then.

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