Monitoring Impact Of Automotive Chip Shortage: Indian Industry Body

A top Indian automotive component industry body said on Friday it was not clear for how long and to what extent a global shortage of semiconductors will impact vehicle production in the country. The warning comes weeks after China said a shortage of chips used in cars could disrupt production well into the next year.

Automobiles have become increasingly dependent on chips - many of them made in Europe - for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking.

"Any stoppage of vehicle lines has a resonating effect on the entire auto component manufacturing ecosystem," Deepak Jain, president of the Automotive Component Manufacturers Association of India, said on Friday.

The group was engaged with manufacturers and monitoring the situation, he said.

Vehicle maker Mahindra and Mahindra Ltd on Dec 9 said that it expects a decrease in production and sales at its automotive division - which makes the popular Thar and XUV models - due to the global supply shortage of micro-processors supplied by Bosch Ltd. Earlier this week, Bosch said its imports have been impacted due to severe supply shortage of semiconductors resulting in being unable able to meet demand in its home market. The shortages come as auto production across the world recover from a slowdown in early 2020 due to coronavirus-related lockdowns.