Semiconductors: Pothole for Car Sales | Ahmedabad News

Ahmedabad: Rishabh Patel, a professional based in Ahmedabad, had booked his first car around Navratri and was promised delivery by Diwali. It’s been about two months and Patel is still waiting for a call from the dealership. “It’s likely that I won’t have the car until after Uttarayan. Due to the semiconductor shortage, the reseller does not have enough inventory, ”he said.
There are many like Patel who continue to wait for the cars they had reserved. Although consumer sentiment has remained optimistic since the start of 2021, supply chain problems triggered by the global semiconductor shortage have reduced vehicle sales in Gujarat. Car sales rose 15% from January 1 to December 13 of this year compared to the same period last year, data from the Union Road Transport Ministry suggests. “There has been a huge increase in the number of four-wheeled vehicles in rural areas and small towns,” said a senior official at the Regional Transport Bureau (RTO), Gandhinagar. “Overall car sales are on the rise, thanks to good income from farming. ”
Car sales in 2021 were 3.13 lakh, which was higher than in the pre-pandemic year 2019. Car sales were 3.03 lakh in 2020 and 2.70 lakh in 2019.
Vehicle registration in 2021 was 11.93 lakh, up from 11.23 lakh in 2020. Officials said that with two weeks to go, they expect registrations to exceed 12 lakh this year. A senior RTO official said: “We expect 30,000 more car registrations this year. But deliveries are slow. In January and February, car sales exceeded 30,000 and rose to 41,000 in June. After that, registrations never hit 30,000 and stayed between 25,000 and 28,000. ”
Auto dealers say they couldn’t cash in on demand due to supply side constraints. The problem caused car sales for November to fall 29% year-on-year, from 31,747 to about 22,518 this year, according to data provided by the Federation of Automobile Dealers Associations (FADA). Overall, holiday sales remained weak due to sourcing challenges.
Pranav Shah, President of FADA for the Gujarat region, said: “Car sales continue to be impacted by the semiconductor shortage. New launches keep customer interest high, but lack of supply prevents this end of sales. Shah added, “The extended waiting period is starting to make customers nervous and may result in loss of interest in purchasing vehicles.”
Dinesh Shah, a businessman based in Ahmedabad, said: “I had booked a mid-size segment car for my son in September and was told the vehicle would be delivered by Diwali. I haven’t picked up the car yet. I am now told that it will be delivered by the first week of January.