Chip Shortage causing Falling Vehicle Demands

Chip Shortage causing Falling Vehicle Demands

As per Maruti Suzuki India senior executive director Shashank Srivastava, Longer waiting for periods and delivery timings of new vehicles are a result of global chip shortage. Such chip shortage can negatively impact the demands in the new vehicle market, said Shashank Srivastava.

 Maruti Suzuki India senior executive director Shashank Srivastava stated that the vehicle production makers are being severely hampered by long delays in the supply of highly advanced semiconductors chips.

Chip Shortage causing Falling Vehicle Demands-Shashank Srivastava

 He further explained how this chip shortage may negatively affect the car demands from the markets. Shashank Srivastava said that currently, the demand levels are stable and well such that the bookings are on an uptrend with indications of improvement during covid times. 

Further adding to his statement Shashank Srivastava expressed his concerns over the decreasing availability of new cars in the market thereby significantly increasing the waiting period for new vehicles.

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“There is concern that such a long wait could have a negative impact on demand trends,” Srivastava said. During his address, Shashank Srivastava reassured that the current bookings will not be canceled due to empathic conversations and relations with their company. 

While speaking about his company’s customer service deliveries, he said- ‘We consult with almost every customer each week to explain what the situation is and when the vehicle can be received. Most of the customers also understand.’ 

Chip Shortage causing Falling Vehicle Demands-Shashank Srivastava

Adding to the customer service and delivery part, Srivastava explained that depending on the model type and variant, the waiting and delivery periods vary across vehicle segments and models from a few weeks to months.

 Speaking on the current position of chip supply Srivastava said that the present situation of semiconductor chip supply is steadily improving. As of now, Maruti has nearly 2.5 lakh units of orders pending. 

As per company data, this November the company’s plants were operating at 80 percent of the total production capacity. Depending on the model and variant, the waiting period can range from a few weeks to months.

 Srivastava explained that at present the supply of semiconductors is improving slightly. Maruti currently has orders for 2.5 lakh units pending. The company’s plants in November were operating at about 80 percent of production capacity.

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