Supply Chain Paralysis Slows Auto Sales, Auto News, ET Auto

“The effects of the shortage are felt more on the four-wheel market than on two wheels,” says FADA.

Pune: Many customers were outside an auto showroom in Vimannagar on Thursday, but many were disappointed that neither the dealership nor the manufacturer was offering a lot of discounts or of discounts – a common trend on festive occasions, including Ganeshotsav.

“I expected there would be incentives for customers such as discounts. But there is nothing like that this time around, ”said a resident of Chandannagar, who wanted a scooter for his wife. He returned without a vehicle, due to a long waiting period on the model of his choice.

“There is good demand from the customer side, and we have reached pre-Covid revenues. But there are issues on the supply side. The main reason is that the cost of production has gone up, whether it’s material, freight or international shipping, ”said Shailesh Bhandari of BU Bhandari Auto, which operates dealerships from four and two wheels.

“The effects of the shortage are felt more on the four-wheeler market than on two-wheelers. There are a good number of back orders to be processed. Dealers don’t have a lot of inventory. They don’t get much from the manufacturers, ”said Federation of Automobile Dealers Associations president Amar Sheth.

Manufacturers such as Piaggio and Mercedes-Benz have announced offers for the holiday season. “As the markets open up, the recovery from Wave 2 has been good. We are introducing some exciting products this holiday season. But the challenge of the semiconductor shortage, made worse by the Malaysian wave of Covid, may act as a damper, ”a Tata Motors spokesperson said.

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The German automaker sold 1,070 units last month and leads the luxury car pack in India, up from 497 units in the same period last year. Next in line was BMW and Jaguar Land Rover.

Industry estimates also suggest a likely mismatch between demand and supply of 75,000 to 100,000 cars and SUVs during the holiday peak period starting in early October through Diwali in November due to production cuts.

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