Microchip and semi conductor update for cars?

The pandemic has had a lasting impact on the auto industry. Due to lockdown and job losses, a lot of people postponed their car buying decision. But now, as the pandemic situation is improving, the micro-chip shortage has hit the auto industry. A lot of production capacity has been affected, leading to high waiting periods. Manufacturers have also delayed new car launches due to production constraints. So what is the latest update regarding the Microchip shortage in India, let’s find out!. 

The waiting period of 5 SUVs you are planning to buy

Latest update

The Russian-Ukraine war is said to worsen the shortage. Russia supplies 40% of palladium required to manufacture semiconductors. Also, about a quarter of the world’s semiconductor-grade Neon comes from Russia and Ukraine. It is not the only country, but there will be a temporary problem. But one good thing is that global manufacturers like Hyundai, Renault, Honda are redirecting their chips to India. This is due to sanctions imposed on Russia, leading to a lot of manufacturers stopping car production in Russia.

What caused this shortage?

The main reason behind this is a result of carmakers cancelling their orders in the first wave of COVID-19. So when the situation improved and the demand picked up, manufacturers were left with fewer chips. This was followed by droughts in Taiwan and a fire at a major chip facility in Japan, further impacting the production.  

Microchip shortage India-Affected manufacturers

Almost all major manufacturers have been severely affected by the chip shortage. Manufacturers like Mahindra and Skoda have been removing some features from their cars to navigate the shortage. Mahindra is also struggling with deliveries of the XUV700 and Thar. Currently, all popular cars have a minimum waiting period of four months.

Mahindra XUV700 variant-wise waiting list is HERE!

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