Hyundai expects chip shortage to improve by 2023 amid ongoing production restrictions, Company says officially
According to a senior company official, Hyundai Motor India expects the semiconductor shortage problem to improve next year and the emergence of a clear picture of the competitive outlook as it faces the challenge. face production constraints. The second largest passenger vehicle maker in the domestic market by volume has faced stiff competition from local manufacturers Tata Motors and Mahindra & Mahindra, which are appreciating. their new SUV models.
Besides, Maruti Suzuki has also revised its SUV plans with the introduction of the new Brezza and Grand Vitara.
Ahead of the festive season, HMIL, the maker of popular SUVs, Creta and Venue is waiting for 1.3 lakh pending orders.
“The year 2022 is driven more by the chip problem, so the real situation of demand will only emerge when we can produce without the constraints of semiconductor supply and that will no more”. Hyundai Motor India Director (Sales, Marketing and Service) Tarun Garg spoke to PTI during an interaction.
He is answering a question about whether the company can lead the SUV segment this year as competition grows stiffer.
“It’s difficult to assess now..we feel that in the future, in 2023, the situation will improve and then the actual demand situation will come into play,” noted Garg.
For the company, demand is clearly outstripping supply, he said.
“Competition is definitely on the rise. More and more models are being introduced… 80-90% of the models launched in the last few years are in the SUV segment… this is where,” says Garg. growth,” said Garg.
In the fourth and sixth quarters, domestic passenger car sales reached 9,10,431 units compared to 6,46,272 units in the same period of fiscal year 22.
Hyundai sent 1,35,295 units to dealers during the review period, Tata Motors 1,31,940 units while Mahindra & Mahindra sold 76,310 units in Q6.
Garg notes that Hyundai has been able to build a strong brand image in the country over the past two decades.
The automaker believes very strongly that as long as it will continue to really bring technological innovations to India, customers will continue to prefer it over others, he added.
Besides, the continued supply of diesel-powered models, which are in great demand in various states such as Madhya Pradesh, Rajasthan and Telangana, is also a positive factor for the company.
“India is such a country, geographically wise diesel (segmentation) is very important in some states.. demand is continuously increasing in these areas.. it remains very relevant. .still a very strong proposition..”, Garg said.
He noted that the SUV segment in general continues to grow at a rapid rate and currently accounts for 41% of the total 30,000 domestic passenger car market.
Regarding sales during the holiday season, he noted that semiconductor supplies have improved, helping its production increase steadily over the past few months.
“We are encouraged by that and demand continues to be strong,” Garg said.
