Gujarat: Chip shortage hinders increase in auto sales

Semiconductor shortage has been present for over a year, has caused a decline in car sales . The demand is particularly strong for hybrid cars as well as SUVs for which the waiting period is up to 9-14 months .

AHMEDABAD: Though inventory for new cars is burgeoning, the semiconductor shortage, which has been present for over a year, has caused a decline in car sales.According to data provided by car dealers, the number of calls is increasing despite a longer waiting period for cars.To the contrary, overall sales are poor due to a faster turnaround period.According to the statistics collected by the Federation of Automobile Dealers Association (FADA), 24,892 vehicles were sold in Gujarat in July, up 4.15% from 23,899 cars sold in July 2021.

Dealers have good sales.On the demand front, there is no shortage, and people who want to buy new cars are booking them, according to Pranav Shah, chairman of the FADA-Gujarat region.Nonetheless, supply chain barriers remain.The demand is particularly strong for hybrid cars as well as SUVs for which the waiting period is up to 9-14 months.

According to FADA, the world is facing tensions between Taiwan and China following the Russia-Ukraine war.The possibility of a semiconductor shortage is also emerging as chipmaker TSMC warns that Taiwanese chip manufacturers will be rendered inoperable if war strikes, according to a statement issued by FADA.Irrespective of the Rath Yatra festivities, Ahmedabad's car dealerships recorded a healthy increase in sales in July.The festive mood, on the other hand, did little to boost overall sales growth.

In the next 12 months, we will have reservations for at least 10,000 cars.The waiting period for all cars is not 12 months, but certain models that are in high demand have a longer waiting period, according to Jigar Vyas, the CEO of a city-based car dealership.The stock of chips is limiting due to the chip shortage.We've seen a shift in customer preference towards premium models, and therefore the demand is high.