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Auto sector battling semiconductor crisis, yet car companies expect good sales this festive season

Auto sector battling semiconductor crisis, yet car companies expect good sales this festive season

Honda and Hyundai said that there is no doubt that the auto sector is troubled by chip shorts. Due to this the problem of supply chain has become serious. Despite this, due to the removal of the Kovid curb, the sales of the car will be good this festive season.

Market sentiment has improved after the Kovid-19 curbs are lifted.

Major auto companies Hyundai and Honda Cars expect the demand for cars to remain strong in the festive season after the improvement in the market situation. These companies said that the restrictions imposed due to Kovid-19 in most states have now been removed. In such a situation, the festive season is expected to be good for car companies. These companies say that due to the epidemic, now more and more customers want to buy their personal vehicle. Hence, sales are expected to remain strong during the busy festive season.

Automobile companies believe that going forward, the sector may face a supply challenge due to shortage of semiconductors. Apart from this, the third wave of the epidemic can also derail the vehicle sector. Tarun Garg, director (sales, marketing and service), Hyundai Motor India, said, “The demand conditions are good. The desire to buy a personal vehicle has led to a good demand across various product categories across the country. Echoing similar views, Honda Cars India Senior Vice President and Director (Marketing and Sales) Rajesh Goel said that the market sentiment has improved after the lifting of the COVID-19 curbs.

Sales growth has been better than expected

“The improvement in the industry sales figures during the last few months has been better than the initial estimates, which is a good thing. The same trend is expected to continue during the festivals as well. The festive season has started with Onam in South India. Now this atmosphere of enthusiasm is being seen in other markets of the country.

Preparing to launch new models

Goyal said that the industry is preparing to launch some new models. This will help in achieving better sales figures. He said that the new variant of the company’s new offering compact sedan Amaze has received good response in various markets.

Hyundai said that the effect of supply on us too

On chip shortage, Garg said it has affected Hyundai along with other companies in the industry. The company is trying to manage its production better in the current circumstances. He said, “We are part of the global supply chain. In such a situation, we are also facing the same challenge.

Auto sector still affected by supply

Goyal also acknowledged the supply chain bottleneck and said that this is a big crisis before the industry. The industry is facing the challenge of meeting the supply amid strong demand. He said that we are also facing the shortage of chip but we are trying our best to keep its impact to a minimum.

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.

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