Car waiting periods to now reduce?
The pandemic had a lasting impact on everyone. Even the auto industry was severely impacted by the global pandemic. But as the auto industry was on its path to recovery, the chip shortage once again affected the industry. Due to the chip shortage, all cars have long waiting periods. Several manufacturers had to delay their new launches to navigate the shortage. But the chip shortage has been improving one step at a time. In today’s article, we will discuss if car waiting periods will get better now.
Latest update
The situation regarding microchips is improving, but it continues to be a major issue for manufacturers. The war in Ukraine has also had an impact on the chip shortage as Russia supplies 40% of palladium required to manufacture semiconductors. But one good thing is that global manufacturers like Hyundai and Honda are redirecting their chips to India. This is because most manufacturers have stopped production in Russia due to sanctions amidst the Ukraine-Russia war.
Car waiting periods – Causes of shortage
The main reason behind the shortage was manufacturers cancelling their orders in the first wave of Covid-19. At the same time, the demand for phones and laptops picked up due to the WFH conditions. So, chip manufacturers diverted most of their reverted supplies to this industry. So once the demand picked up post pandemic, car manufacturers were left scrambling for chips leading to the current situation.
Affected manufacturers
All major manufacturers in India have been severely affected by the shortage. Currently, all popular cars have a waiting period of at least four to five months. Some manufacturers like Skoda and Mahindra have been deleting some features to navigate through this shortage. Both these manufacturers will be giving the deleted features once the shortage problem has been solved.
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