Chip shortage to shave off 500k units from car firms’ sales books
The Indian passenger vehicles industry will lose about 500,000 units of sales in FY22 on account of the semiconductor shortage, ratings agency Icra said on Wednesday.
That translates to about ₹1,800-2,000 crore in lost sales opportunity, the ratings agency said.
ET was the first to report last month that the Indian car market could lose 500,000-600,000 units in sales due to the supply chain woes shortage.
If not for the supply chain issues, the industry would have this year crossed its previous peak annual sales of 3.4 million units seen in FY19. Icra has now revised its sales forecast for FY22 downward to 8-11%, which translates to around 3 million units.
The semiconductor crisis peaked in September, when an estimated 120,000 units sales was lost, as per a presentation from Icra. While the supply situation is expected to improve going forward, normal supplies are only expected towards end of 2022.