XUV700 had 25,000 bookings in 57 minutes, which eventually crossed 50,000 bookings, and share prices of both Tata Motors and M&M have seen a spike and gone upon an average of 25% in 30 days. MG Astor has also got a good response, and overall there is a lot of buoyancy in the automotive trade. There are not many discounts and waiting periods are usually months for most manufacturers. It’s euphoric time then, and should there be firecrackers outside all Auto Industry corporate offices? This is where a nuke called “Semiconductor” has busted the party.
Semiconductor chips are used to power various features, from power steering, backup cameras to emergency braking systems, etc. Today, without the integration of technology, it’s not a car but maybe a horseback carriage. Auto plant closures during the pandemic and adding fuel to the fire is a fire catastrophe at a significant chip supplier factory. The ever increased demand for electronic devices has contributed to the chip crisis. AI inside is loads of chips inside.
My conversation with significant industry leaders tells me that there will be a
chip shortage situation for the whole of 2022, and we all have to live with production
bottlenecks globally. That’s another story that the economy is opening up, and consumers are all ready to sign that cheque to drive home a spanking new car. Some settle for used cars, pushing the used car market and aftermarket car accessories to another high. After a long time, the situation is reversed with enormous demand. Still, supply is restrained, pushing the brakes again, and manufacturers are expecting a washed-out Diwali in terms of sales. Hopefully, the spirit will not die down, wishing you a Happy and prosperous Diwali.