Chip crisis affected delivery, dealers fear huge losses in festive season


New Delhi: The festive season can prove to be a loss-making deal for the vehicle dealers. This apprehension has been expressed by the Federation of Vehicle Dealers Associations (FADA) President Vinkesh Gulati. They say that the automakers are not able to ensure adequate deliveries to the dealers. The reason for this is the semiconductor crisis that arose for the manufacturers.  

This festive season is not a profitable deal for the dealers

Gulati told PTI-language, ‘‘Chip crisis continues. In such a situation, the manufacturers are facing production issues. Automakers are reducing the deliveries of their dealer partners.’’ The beginning of Navratri is considered to be a busy 42-day season for the vehicle dealers. But due to lack of supply, dealers are unable to assure their customers of ensuring the desired vehicle.

Bookings are getting canceled with dealers amid huge demand for many models. Due to insufficient stock with the dealers, there is also a reduction in on-the-spot purchases. Gulati said, ‘‘The festive season is the most important for us in terms of sales. On an average, in these two months, we achieve 40 percent of our annual sales target.

automakers cut deliveries due to semiconductor crisis

This is the special time when we are able to earn and save for operating the rest of the month. This year we are not getting enough number of vehicles. In such a situation, we are apprehensive of heavy loss.’’ He added that there is a ‘waiting period’ for most models in the passenger vehicle segment. Has increased a lot compared to the previous one to three months.

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