Chip shortage in the automotive industry: nearing its end?
23 Dec 2021
The chip and semiconductor shortage has grappled the
automotive sector intensely. With production halted and manufacturing impacted
globally, automotive supply chain shortages are now withstanding a nightmare
for original equipment manufacturers (OEMs). Analysts opine that due to these
challenges, the automotive industry is facing a huge decline in business by 70%
in the last three months. Besides, the demand for commercial vehicles (CVs) has
rebounded to its pre-Covid scenario. Hence, the supply of semiconductors is
impacting the overall business of OEMs. Rajesh Menon, Director General, Society
of Indian Automobile Manufacturers (SIAM) says, “The passenger vehicles sales
in October 2021 were down by 27.15%, in comparison to the same time last year.
This is mainly due to the semiconductor shortages.”
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