Indian automakers face semiconductor shortage – Asia Times

While the Indian auto industry is trying to wriggle out of supply chain constraints and a demand slowdown induced by the Covid-19 pandemic, they now have to contend with a global semiconductor shortage.

The usage of semiconductors in the auto industry has gone up as new models have more electronic features such as Bluetooth connectivity and driver assist. When the pandemic forced automakers to close down plants, semiconductor companies diverted production to consumer electronics. But once the automakers resumed production there weren’t enough chips.

Leading Indian automakers such as Tata Motors, Honda and Kia Motors are in touch with their partners to ensure a stable supply of semiconductors to keep their assembly lines humming.

Tata Motors officials feel the shortage will continue in the next fiscal year, while Honda officials expect some production-related disruption in the coming days. Kia Motors has claimed it is closely monitoring the situation. Mahindra & Mahindra and Ford India are also expecting a semiconductor shortage to hamper the production in the current fiscal year.

Bosch Ltd, a major supplier of semiconductors in India, has been hit following a global surge in demand from the consumer electronics industry. The Automotive Component Manufacturers Association said it is yet to gauge the overall impact this shortage will have on vehicle production.