- Auto companies start changing models due to the possibility of a semiconductor chip crisis by 2023
- Sales of car SUVs rose from 19,501 in June to 23,901 in July, but 8,500 cars are still pending
- Semiconductor chips are indispensable in various features of the car, including music systems, power windows
- Semiconductor chip crisis is the reason behind 4month late deliveries of
Car sales have picked up in Gujarat after the second wave of Corona. Still, due to a shortage of semiconductors in automation systems, car deliveries getting late by up to four months.
19,501 personal vehicles sold in the state last June, while 23,901 vehicles sold in July. According to experts, the production of semiconductor chips is extremely complex. As a result, it will take time to set up new plants, which will likely lead to a shortage of chips by 2023.
According to the Dealers Association, 8,500 vehicles are on hold despite a 22 per cent increase in personal vehicle sales in just one month. The reason is the lack of semiconductors used in the automation system of cars, including SUVs and luxury cars.
The situation is that companies have ready-made cars. There is a worldwide shortage of semiconductor chips used to drive automation technology. It allows the brakes, windows, music system, back camera to work at the touch of a button. So the companies’ godowns have a lot of cars without an automation system. The impact of this shortage has led to an increase in car registrations but also a delay in delivery.
This is likely to continue for the next four to five months. The companies have made it clear to the dealers in writing that the delivery of the car will get late. Companies have started making changes to their car models in the wake of the chip shortage.
To meet the market demand, some companies reduce some features by making less effort to use semiconductor chips in their models. About 3500 bookings done in Vadodara every month, but only 1700 of these bookings delivered in the last two months.
The shortage of semiconductors has led to a sharp rise in demand for smartphones and laptops:
The demand for semiconductor chip-based devices like smartphones, laptops, gaming consoles has also increased. This has led to a growing global demand for semiconductor chips. Which has had an impact on the auto industry.
Semiconductors:
Taiwan-Malaysia sends Semiconductor chips for Indian car companies, come from Taiwan and Malaysia. TSMC (Taiwan Semiconductor Manufacturer Company) of Taiwan has a plant with a capacity of 12 million chips.
“Hyundai has discontinued the FX model and introduced an FX executive model without a music system,” said Akshay Shah, manager, car showroom downtown, Vadodara. People are not ready to wait. Companies have reduced supply by 20 to 35%.
‘SUV, sales of high-end cars in the effect of’
Automobile dealer Pranab Shah says the market is getting badly affected. We are facing issues in SUV, luxury cars and Highend bikes. According to our survey, 35% of dealers have 4 months waiting, and 63% have 2 months waiting.
