Despite chip shortage, car dealers in Hyderabad gear up for festive rush – ET Auto

We have a huge pending order bank but cars are coming in from the manufacturer.

Hyderabad: Shrugging off the impact of speed breakers such as semiconductor shortages that have resulted in supply constraints and long waiting periods of three months to about a year for customers, automobile dealers in the city are gearing up for the Dasara rush of customers wanting to pick up the keys to their four-wheeled beauties.

“In spite of supply restrictions owing to semiconductor issues, sales have picked up almost 20% over the pre-Covid period. On Tuesday and Dasara day (Wednesday), we expect to deliver about 250 Maruti cars across our seven showrooms,” said Vinay Saboo, chairman & managing director, RKS Motor Pvt Ltd.

According to Krishna Kumar Shetty, director operations at Mahavir Motors and CEO of Mercedes Benz dealer Adishwar Auto, 2022 has been the most rocking year in the dealership’s history. “We will be delivering 10-15 cars in these 2-3 days’ time. We have a huge pending order bank but cars are coming in from the manufacturer. We have achieved the highest sales numbers in our history this year and are on track to sell 800-900 cars this year as against an average of about 600 cars each year,” Shetty said.

Vihaan Kia too is gearing up to deliver over 50 cars on Wednesday. “Last year there was a Covid impact but this year sales are up 20-30%,” the dealership’s sales team leader Sanjeev Kumar.

However, Mahavir Skoda director Parsva Kumar said the semiconductor shortage was weighing down sales of passenger vehicles this Dasara, especially in the premium segment. “After Shradh there have been decent sales, but compared to last year there has been a dip this Dasara,” he said.

Agreeing, Saboo of RKS Motor said supplies of top end and automatic versions of cars were impacted this Dasara. He added that while post Covid sales in taxi segment have come down buying by individual customers has gone up, primarily in entry segment and this will continue over the next three months.

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The chip giant, which is based in the western state of Idaho, said it plans to begin construction in 2024 on a project expected to be executed over two decades.

The first fall in output since January 2018 coincides with chip inventories soaring 67.3%, suggesting producers are adjusting to a deteriorating international outlook. Factory shipments also fell for a second consecutive month in August, dropping 20.4%, the statistics office said.

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