New Delhi: Global lack of semiconductors India is giving tough competition to the mobile, consumer electronics and automotive sectors amid the festive season, when sales usually peak. automobile industry Around 5 lakh pending orders are understood to have piled up.
While customers usually get bargain deals or lucrative festive discounts during this period, this time they are paying more for a host of things from mobile handsets and TVs to cars due to the lack of chips. Free gifts have disappeared from most automotive showrooms as manufacturers struggle to keep up with demand.
“If you look at the demand parameters, which is reflected in bookings or queries, they are very good. However, unfortunately this year the supply side is a bit muted because of that. semiconductor Issue.
“That’s why the number of bookings has gone up, but the supply hasn’t,” maruti suzuki Shashank Srivastava, Senior Executive Director (Marketing and Sales) India told PTI.
Auto industry, he further added, “As per the current estimates there are 4.5 lakh to 5 lakh bookings pending and Maruti Suzuki alone has 2.15 lakh to 2.2 lakh units pending bookings.”
The problem has not only escalated in October, but is increasing from August to September, Srivastava said, adding that he expects “discounts and bonanza offers to be very muted this time due to supply constraints.”
He added that this time it is less than 15 days, as opposed to the normal inventory creation of around 40 days of stock by the firms at the dealership level to meet the surge in retail demand during the festive season, especially Navratras and Diwali.
Estimated stock inventory as on October 1 stood at around 1.75 lakh units as against wholesale sales of around 3.35 lakh units in the same month last year. It was around 2.25 lakh on September 1 this year.
According to Rajesh Menon, Director General, Society of Indian Automobile Manufacturers (SIAM), as a result of the severe shortage of semiconductors faced by Tier I and II component suppliers, vehicle manufacturers have to supply parts such as engine electronic control units, keyless entry barriers. is facing. , ABS system and infotainment system.
As far as consumer electronics is concerned, CEAMA President Eric Braganza chip shortage is “the biggest challenge facing the consumer electronics industry, as price hikes are on the cards.”
Offering the views of the Consumer Electronics and Appliances Manufacturers Association (CEMA), he said that as of now, the industry has not seen an immediate impact on the supply side due to shortages.
“However, as we enter 2022, there is a high probability of chip shortages affecting the supply side and increasing final commodity prices. We have already seen this in global markets and the same in domestic markets. It just might. The domino effect,” Braganza said.
Echoing similar views, Prachir Singh, Senior Research Analyst, Counterpoint Research, said the sector in India has been relatively less affected in terms of product availability due to global component crunch for the first half of the year.
“However, this crisis is likely to impact the Indian manufacturing supply chain post the festive season… In terms of pricing, we have seen a gradual increase in prices across several product segments over the past few months.
“This trend is likely to continue for the next few quarters as well,” Singh said, adding the increase in prices due to component shortages would impact consumer demand in the price-sensitive Indian market.
Confirming the development, Super Plastronics Pvt Ltd (SPPL) CEO Avneet Singh Marwah said that the chip shortage problem has led to a “massive price hike” as the demand for high definition and absolute high by 35 per cent in the last quarter. rate has increased. Definition chips, followed by 30 percent more in the next quarter.
For 4K TV sets, the prices have been increased by 50 percent with a minimum lead time of 60 days.
The company, which is a licensee to brands such as Blaupunkt, Thomson, Kodak, Westinghouse and White-Westinghouse to sell and manufacture LED TVs and other products, has been facing production issues in the industry.
“The production of TVs will be disrupted in the months of November and December. Production may be affected by 20-30 per cent in the coming quarter, it may continue till the end of 2022,” Marwah said.
Semiconductor is an essential part of modern electronic equipment ranging from home appliances, laptops, smartphones and cars. Its demand has gone through the roof during the COVID-19 pandemic as people have been forced to work from home, increasing demand for electronic devices.
The pandemic also increased the demand for cars as people preferred personal mobility over shared or public transport due to safety and hygiene factors.
Som Kapoor, EY India Partner, Automotive Sector, said, “Semiconductor shortage is impacting the production of electronics-enabled devices ranging from cars to computers to consumer durables. All these demand work from home and social distancing across the globe. Getting on with.”
From the perspective of the automotive industry, this is a double whammy, where the use of semiconductors is increasing day by day, including infotainment, sensor-based features, etc. and the increased demand while launching Original Equipment Manufacturers (OEMs) Struggling to make ends meet. He said the new feature-rich model.
However, this crisis presents a glimmer of hope for the Indian manufacturing sector.
“There is a huge opportunity for semiconductor manufacturers in India to invest not only in the captive automotive market, but also to meet the needs of other consumer goods and electronics industries,” said Menon of SIAM.
On the outlook, EY India’s Kapoor said, “While major capacity additions are being planned around the world, given the concentrated and complex supply chain, it is likely that the problem will persist in the immediate future as well.”
“A cross-industry government-backed taskforce based approach can help ease the concern from both short- and long-term perspectives,” he said.
While customers usually get bargain deals or lucrative festive discounts during this period, this time they are paying more for a host of things from mobile handsets and TVs to cars due to the lack of chips. Free gifts have disappeared from most automotive showrooms as manufacturers struggle to keep up with demand.
“If you look at the demand parameters, which is reflected in bookings or queries, they are very good. However, unfortunately this year the supply side is a bit muted because of that. semiconductor Issue.
“That’s why the number of bookings has gone up, but the supply hasn’t,” maruti suzuki Shashank Srivastava, Senior Executive Director (Marketing and Sales) India told PTI.
Auto industry, he further added, “As per the current estimates there are 4.5 lakh to 5 lakh bookings pending and Maruti Suzuki alone has 2.15 lakh to 2.2 lakh units pending bookings.”
The problem has not only escalated in October, but is increasing from August to September, Srivastava said, adding that he expects “discounts and bonanza offers to be very muted this time due to supply constraints.”
He added that this time it is less than 15 days, as opposed to the normal inventory creation of around 40 days of stock by the firms at the dealership level to meet the surge in retail demand during the festive season, especially Navratras and Diwali.
Estimated stock inventory as on October 1 stood at around 1.75 lakh units as against wholesale sales of around 3.35 lakh units in the same month last year. It was around 2.25 lakh on September 1 this year.
According to Rajesh Menon, Director General, Society of Indian Automobile Manufacturers (SIAM), as a result of the severe shortage of semiconductors faced by Tier I and II component suppliers, vehicle manufacturers have to supply parts such as engine electronic control units, keyless entry barriers. is facing. , ABS system and infotainment system.
As far as consumer electronics is concerned, CEAMA President Eric Braganza chip shortage is “the biggest challenge facing the consumer electronics industry, as price hikes are on the cards.”
Offering the views of the Consumer Electronics and Appliances Manufacturers Association (CEMA), he said that as of now, the industry has not seen an immediate impact on the supply side due to shortages.
“However, as we enter 2022, there is a high probability of chip shortages affecting the supply side and increasing final commodity prices. We have already seen this in global markets and the same in domestic markets. It just might. The domino effect,” Braganza said.
Echoing similar views, Prachir Singh, Senior Research Analyst, Counterpoint Research, said the sector in India has been relatively less affected in terms of product availability due to global component crunch for the first half of the year.
“However, this crisis is likely to impact the Indian manufacturing supply chain post the festive season… In terms of pricing, we have seen a gradual increase in prices across several product segments over the past few months.
“This trend is likely to continue for the next few quarters as well,” Singh said, adding the increase in prices due to component shortages would impact consumer demand in the price-sensitive Indian market.
Confirming the development, Super Plastronics Pvt Ltd (SPPL) CEO Avneet Singh Marwah said that the chip shortage problem has led to a “massive price hike” as the demand for high definition and absolute high by 35 per cent in the last quarter. rate has increased. Definition chips, followed by 30 percent more in the next quarter.
For 4K TV sets, the prices have been increased by 50 percent with a minimum lead time of 60 days.
The company, which is a licensee to brands such as Blaupunkt, Thomson, Kodak, Westinghouse and White-Westinghouse to sell and manufacture LED TVs and other products, has been facing production issues in the industry.
“The production of TVs will be disrupted in the months of November and December. Production may be affected by 20-30 per cent in the coming quarter, it may continue till the end of 2022,” Marwah said.
Semiconductor is an essential part of modern electronic equipment ranging from home appliances, laptops, smartphones and cars. Its demand has gone through the roof during the COVID-19 pandemic as people have been forced to work from home, increasing demand for electronic devices.
The pandemic also increased the demand for cars as people preferred personal mobility over shared or public transport due to safety and hygiene factors.
Som Kapoor, EY India Partner, Automotive Sector, said, “Semiconductor shortage is impacting the production of electronics-enabled devices ranging from cars to computers to consumer durables. All these demand work from home and social distancing across the globe. Getting on with.”
From the perspective of the automotive industry, this is a double whammy, where the use of semiconductors is increasing day by day, including infotainment, sensor-based features, etc. and the increased demand while launching Original Equipment Manufacturers (OEMs) Struggling to make ends meet. He said the new feature-rich model.
However, this crisis presents a glimmer of hope for the Indian manufacturing sector.
“There is a huge opportunity for semiconductor manufacturers in India to invest not only in the captive automotive market, but also to meet the needs of other consumer goods and electronics industries,” said Menon of SIAM.
On the outlook, EY India’s Kapoor said, “While major capacity additions are being planned around the world, given the concentrated and complex supply chain, it is likely that the problem will persist in the immediate future as well.”
“A cross-industry government-backed taskforce based approach can help ease the concern from both short- and long-term perspectives,” he said.
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