Automobile dealers’ body FADA said passenger vehicle (PV) supplies could be further affected if chip-making countries go under lockdown due to the spread of the Omicron variant.
However, FADA said on Thursday that it expects semiconductor shortages to normalize by the second half of next year.
Federation of Automobile Dealers Associations (FADA) President Vinkesh Gulati said, “We see 2022 as a neutral year as the rise of Omicron has once again created fear globally.”
“This could further impact supply in passenger vehicles if chip-making countries go into lockdown or prioritize chip-making for electronics used to work from home.”
He added that FADA expects supply as well as demand to gradually normalize in the second half of 2022.
“The auto industry can only fully recover by 2023 and return to its pre-COVID levels,” Mr Gulati said.
He, however, noted that the two-wheeler segment, which has been facing continued demand slowdown, may go into further recession once the third wave hits.
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