Leading carmakers are grappling with a huge backlog of around 6.5 lakh units, with chip shortages continuing to crimp their manufacturing activities and leading to long waiting periods for customers. The country's largest carmaker Maruti Suzuki alone has a backlog of around 3.4 lakh units while Hyundai and Mahindra & Mahindra have a combined pending order list of about 3 lakh units.
Tata Motors, Kia, and Honda are also sitting on substantial
pending orders.
With the auto industry slowly witnessing revival after
pandemic shocks, in recent times, even luxury carmakers have seen demand
outstripping supply, resulting in backlog of orders.
"As per our estimates, there should be a backlog of
around 6.5 lakh units across the passenger vehicle market. For Maruti Suzuki
alone, the figure has crossed the 3.4 lakh mark," Maruti Suzuki India
Senior Executive Director (Marketing and Sales) Shashank Srivastava told PTI.
According to him, enhancing production is the only way out
of the situation.
"The last two quarters have been above nine lakh mark
(sales) for the industry. It is the first time ever in the Indian auto industry
that we have crossed nine lakh sales in consecutive two quarters...it means
that demand remains very strong in the market," Srivastava said.
The pending order list has grown due to chip supply issues
which have been continuing for nearly two years now, he said and added that it
will take time to reduce the backlog. "Going ahead, with enhanced
production it will come down".
A Tata Motors spokesperson said the waiting period for its
passenger vehicle range stretches between 4-12 weeks, depending on model
variant and colour.
"And for electric vehicles, it is going up to 6
months," the spokesperson said.
Honda Cars India Director (Marketing and Sales) Yuichi
Murata said the supply side challenges, including worldwide chip shortage, has
affected its production and despatches since last year, leading to longer
waiting periods for customers.
"Unfortunately, this situation still persists and we
are trying our best to address this situation," he said.
Further, he said the company has been prioritising the
production of fast-selling models and variants to cater to the demand
effectively.
The waiting period for company cars varies anywhere from 2
to 9 months.
Petrol variants have two months of waiting, diesel variants
have 3-5 months, and City Hybrid have a waiting of 9 months for new bookings.
Semiconductors are silicon chips that cater to control and
memory functions in products ranging from automobiles, computers and cellphones
to various other electronic items.
The usage of semiconductors in the auto industry has gone up
globally in recent times with new models coming with more and more electronic
features such as Bluetooth connectivity and driver-assist, navigation, and
hybrid-electric systems.