MG Motor India Facing Semiconductor Supply Constraints; Situation Likely To Improve By Q4 FY2022

The supply chain issue has been a common concern in the auto industry since it grappled the COVID-19 pandemic. Semiconductor or chips as you call it in common language are one of the highly in demand components in modern age cars and automakers are facing severe supply issues here as well. Semiconductors are also used extensively in MG cars like the Hector, ZS EV and Gloster which are high on technology and the carmaker too is having problem in keeping up with demand for these models, because of supply issues.

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Rajeev Chaba, President & MD - MG Motor India in conversation with Siddharth Vinayak Patankar, Editor-in-Chief, carandbike on the latest Freewheeling with SVP webisode.

Speaking with Siddharth Vinayak Patankar, Editor-in-Chief, carandbike on the latest Freewheeling with SVP webisode, Rajeev Chaba, President & MD- MG Motor India said, "We have more chips than any other competition cars and because of that we have huge challenges on the chips. For Hector as an example right now, on a free flow basis we get over 4,000 orders a month, but we're able to service only 3000 a month. So likewise the ZS EV, it is doing very good right now but we can't supply more 350 units a month. In the long term it shouldn't be a problem I think. It's only short term to mid-term. And my assessment would be this will be there till Chinese New Year because globally there will be a huge demand for all types of goods that use chips and not only automotive. So Chinese New Year is after Christmas in February and by then we hope there should be some respite and even the COVID situation should improve. I also think that the Freight rate should come down after November. So we just need to survive till the first quarter of next year."

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The MG Astor will be the company's next launch in India.

MG Motor India has been betting big on technology right since when it started its journey in India with the MG Hector. As already mentioned, semiconductors are crucial components in a tech laden vehicle that where multiple hardware work in tandem with the software based processor to give a better in car experience. The company is also set to introduce its new Concept of Cars as a Platform (CAAP) software which will use numerous numbers semiconductors in its upcoming and existing models. The supply issue is expected to improve post the Chinese New Year in Q4 FY2022, when South Asian nations will be able to increase the supply.