Semiconductor shortage may hit auto production: Report

Semiconductor shortage may hit auto production: Report

Mumbai, Aug 31 (PTI) Global shortage of semiconductor chips is impacting automobile production and this problem could hit wholesale sales in August-September, irrespective of demand.

Financial services firm Jefferies said in a report that registration of passenger vehicles and tractors in August grew by 41-44 percent compared to the same period in 2019, and truck registrations are also improving.

However, two-wheeler registration declined by 19 per cent in August this year as compared to the same period in 2019.

“The chip shortage is hurting production and could impact wholesale sales in August-September,” Jefferies said.

“Companies such as Maruti, Bajaj and Royal Enfield saw an increased impact in the September quarter,” the report further said.

These obstacles were increased by the recent pandemic-imposed lockdown in Malaysia.

Semiconductors are silicon chips that perform control and memory functions in products ranging from automobiles, computers and cell phones to various other electronic goods.

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