Hyundai India expects semiconductor shortage to improve next year
Hyundai Motor India expects the issue of semiconductor shortage to improve next year as well as clarity on the competitive scenario as it faces production constraints at present, a senior company official told PTI. The company has been facing heavy competition from home-grown automakers Tata Motors and Mahindra & Mahindra, which are focusing on their new SUV models. Even Maruti Suzuki has improved its SUV game with the launch of new Brezza and Grand Vitara.
At present, Hyundai has a backlog of 1.3 lakh pending orders owing to the upcoming festive season and chip shortage is making the situation worse. “2022 is driven more by the chip issue, so the real situation of demand will only emerge once we are able to produce with no constraints of semiconductor supplies," said Hyundai Motor India Director - Sales, Marketing and Service, Tarun Garg.
While talking about the company's market position in the SUV segment and the competition in the segment, Garg said that demand is outdoing supply for the company currently. "The competition is definitely increasing (but) it is very difficult to judge now… we feel that going forward, in 2023 the situation will improve and then the real demand situation will come into play," Garg noted.
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In the April-June quarter, the domestic passenger vehicle sales of Hyundai India stood at 9,10,431 units when compared with 6,46,272 units in the same period of FY22. The automaker dispatched 1,35,295 units to dealers during the period while Tata Motors sent out 1,31,940 units and Mahindra sold 76,310 units during the June quarter.
Garg also stated that as long as the automaker would continue to bring in technological innovations to the country, customers will continue to prefer it over others. The company plans to continue offering diesel cars which have a very strong demand in states such as Madhya Pradesh, Rajasthan and Telangana.