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The semiconductor chips shortage, and how carmakers are coping?

  Jun 08, 2021

The semiconductor chips shortage, and how carmakers are coping?

Q. What is the news ?
A. A protracted shortage of inputs, especially semiconductor chips, has made India-based car manufactures and premium bike makers curtail production across categories. While carmakers in India appear to be waiting to ride out the chip famine by constraining production, their global counterparts have got more creative in addressing the shortage.

Q. Why did the chip famine occur?

Q. What is the impact of the chip famine?

Q. How have Indian vehicle makers responded?

Mahindra & Mahindra has said it is factoring in some delays in the launch of its cars with the company flagging concerns over seamless availability of raw materials, especially semiconductors. Supply constraints are learnt to have caused some output issues at Tata Motors Commercial Vehicles. At Bajaj Auto, production of premium motorcycles has been hit. Ford Motor, the American carmaker, in a statement earlier this year, said that both of its plants in Chennai and Gujarat are facing supply issues, and they expect shortage to continue through at least the first half of 2021.

Q. What are global carmakers doing?

In addition to delaying vehicle deliveries, some companies have reportedly started discarding features and high-end electronic capabilities on a temporary basis to deal with the chip shortage. Japanese carmaker Nissan is said to be leaving navigation systems out of thousands of vehicles, while French company Renault has stopped offering a larger digital screen behind the steering wheel on its SUV. 

Q. What’s next?