Parts and chip shortage delays in the logistics car, electronics problems may last until the end of June


SEATTLE, WA, United States, March 28, 2022 / — Auto and consumer CEOs expect the shortage of electronic components and semiconductors to last until the end of June. In the meantime, supply could remain below demand for smartphones, car TVs, laptops and refrigerators. The company is expected to accelerate the introduction of new models over the coming year as the hurdles gradually diminish.

Production and distribution facilities are slowly opening and supply is resuming, so the chip shortage should be less severe by the June quarter, said Madhav Sheth, President and CEO of the global smartphone maker business. “Our 2022 launch plan is on track,” he said.

Many CEOs claimed to have suffered significant losses on sales that could have been made due to the disruptions which also delayed the launch of new models. However, they expect losses to be lower in the coming year as production increases.

Indian automakers have lost sales of about $5 billion, or around 20% of vehicle production in 2021, industry experts estimate. It should drop to 10% in the next. Gaurav Vangaal, director of the associate department at global automotive forecasting firm IHS Markit, said India lost more than half a million light vehicles to semiconductor shortages in 2021.

“We have seen persistent issues in the semiconductor industry’s global production capacity to allocate resources and meet LV (light vehicle) production demands,” Vangaal said.

All electronics and automakers have faced parts shortages and logistical delays for more than a year due to manufacturing disruptions and Covid-induced shutdowns. Shortage of containers, closures and congestion in ports.

They also increased the cost of parts by 40-100%, and logistics costs increased six times more than before Covid. The problem has been compounded by increased demand for items that reflect changing lifestyles, such as working from home and studying from home, as well as people buying expensive cars or goods in the midst of the epidemic.

Over the past year, Renault India has lost between 25,000 and 30,000 units, or around 30% of its monthly output, due to chip shortages.
“We could have easily sold an average of 12,000 units, however, due to the lack of stock and the difficulty in selling 8,000 units per month over the past year,” explained Renault India MD Venkatram Mamillapalle. “Things are improving somewhat, however, supply information is not as clear. We expect this issue to last until mid-2022.”

Panasonic India CEO Manish Sharma said there was a backlog of more than a month for some components, like circuit boards. The delay will be normalized in the second half of 2022.

The companies also said they had started to enter into long-term agreements with component manufacturers, including smaller suppliers, to ensure capacity and also to work with new suppliers. These bring results, the companies said.

Skoda Auto Volkswagen has managed to get priority seat chip allocations due to new launches, but it still isn’t getting enough supplies to begin an additional production shift scheduled for November. Gurpratap Boparai, Managing Director of Skoda Auto Volkswagen India, said the company expects significant growth in 2022 and will add further change in the near future.

Although the company is expected to record high intensity double-digit growth due to the introduction of new models, due to the scarcity of components. he refrained from making growth forecasts due to lack of components.

Easybom will continue to report the latest chip issues, as well as update inventory and real-time prices for electronic components.

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