Monday, December 6, 2021

INFORM.INSPIRE.UPSKILL

INFORM.INSPIRE.UPSKILL

Monday, December 6, 2021

CHIP SHORTAGE IMPACTING THE OFFTAKE OF PASSENGER VEHICLE

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While the festive season is expected to give robust sales to the auto industry, this year seems to be different. Automobile dealers’ body FADA(Federation of Automobile Dealers Association ), termed the current festive season as worst in a decade in terms of business for the auto dealership across the country.
The apex body said that the chip shortage situation has impacted the Offtake in the passenger vehicle ( PV) segments thus the vehicle dispatch to the dealers.

FADA president Vinkesh Gulati , in a statement said that “Chip shortage is impacting supplies in PV segment, creating a huge shortage of vehicles in SUV, compact – SUV and luxury segment,” . Gulati also noted that entry-level passenger vehicle segment are seeing less demand, likely due to customers conserving money for health care needs . Gulati stated that sales in the entry two- Wheeler segment were still not picking up due to high fuel prices and rural distress.

In the commercial vehicle space, circumstances has been comparatively better in commercial vehicle space due to the pick-up in demand for intra state movement of goods.

-Ritika Chauhan

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