Car buyers face delay amid chip shortage

Published August 6, 2021
Global semiconductor chip crisis is affecting the supply chain and production of automobiles in the country as buyers face months-long delay in the delivery of vehicles. — Reuters/File
Global semiconductor chip crisis is affecting the supply chain and production of automobiles in the country as buyers face months-long delay in the delivery of vehicles. — Reuters/File

KARACHI: Global semiconductor chip crisis is affecting the supply chain and production of automobiles in the country as buyers face months-long delay in the delivery of vehicles.

The chip shortage, which began in the first quarter of 2021 in Asia, hit the global auto industry hard as the demand for semi-conductors increased after lockdowns were lifted.

Almost all car manufacturers are unable to carryout timely deliveries, citing chip shortage as well as overwhelming advanced bookings.

The longest wait is faced by buyers who booked the new Honda City models including Aspire which has a delivery time of March 2022 in case a buyer books it today. Other Honda models would be delivered in January and February 2022.

A dealer of Honda City said buyers will need to wait till March 2022 as advance bookings have gone beyond the company’s expectation. The company is reported to have booked over 12,000 units after opening up the booking in May.

Talking to Dawn, an executive of the Honda Atlas Company Ltd said, “We have parts of Honda City. The delivery of the vehicles booked in May will start from August 24.”

However, he said, the company has suspended the booking of Civic Turbo for a month owing to semiconductor chip shortage.

The HACL management had informed corporate analysts in a briefing held in the last week of July that it has now started double shift and is operating at maximum capacity to meet strong demand.

On prices, the company said if pressure on rupee continues, some of the impact would be passed on to car prices.

The delivery schedule of Toyota Yaris hovers between one to 1.5 months followed by three to four months time in Corolla. Hilux and Fortuner deliveries range between three to four months.

Talking to Dawn, Pak Suzuki Motor Company Limited (PSMCL) spokesman Shafiq Ahmed Sheikh said delivery time of some Suzuki models is two months while for others it hovers between 15 days to one month.

The company is facing supply-chain problems due to the delay in shipments of imported parts amid lockdown in several countries, he acknowledged. “We are trying our best to deliver vehicles as soon as possible,” he added.

“For those of us who booked Suzuki Cultus automatic in April, the delivery is likely to be in September,” a buyer who had booked this model said.

MG Motors has informed its customers that the global auto industry “is facing a historic challenge relating to a serious shortage of semiconductor chips right now. This is beyond any one’s control and deliveries are being delayed for all car brands.”

The company said it is working tirelessly to expedite deliveries by ensuring that every vehicle is delivered on a ‘first come, first serve’ basis. The company also promised to refund customers’ amount on request while urging them to show patience.

Published in Dawn, August 6th, 2021

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