Guess Why Car Manufacturing Is Hit

New Delhi: Carmakers in India and around the world are facing a unique challenge – semiconductor shortage.

Maruti’s Gujarat plant has reduced production to one shift and will shut production for 3 days, according to a statement by the company.

Mahindra & Mahindra (M&M), MG Motor and Ford India also had to undertake production cuts due to this shortage.

The waiting period for the Mahindra Thar shot up to nine months recently because of this shortage. Mahindra sources the chips from Bosch.

Luxury brands such as Jaguar Land Rover have predicted a loss of 1 lakh units this year because of this shortage.

The reasons for the shortage are attributed to the pandemic, inefficient supply, rise in demand due to cloud computing, drought in Taiwan, trade sanctions on China, and so on.

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