The semiconductor chip shortage that has affected the global automotive industry has also impacted car sales in India. According to a recent report, the maximum waiting periods (MWPs) for half of India’s top 20 best-selling car models have increased in the past year. Automotive consultancy firm Jato Dynamics’ data shows that only five out of India’s top 20 car models have experienced a reduction in their MWPs. In contrast, the MWPs for the other five models have remained unchanged. Maruti Suzuki, India’s largest carmaker, dominates India’s top 20 car models with ten models. Out of these, six models, including Wagon R, Swift, Ertiga, Dzire, Eeco, and Celerio, have witnessed a rise in their MWPs between April 1 last year and April 1 this year. Baleno and Alto 800 saw a reduction in their MWPs, while Brezza and S-Presso maintained their MWPs during this period.
Shashank Srivastava, Maruti Suzuki India’s senior executive officer for marketing and sales, attributes the longer wait times for specific models to a semiconductor component shortage, which has led to reduced vehicle availability. However, other factors, such as fluctuating CNG prices and the discontinuing of competing models, have also impacted the number of bookings and waiting periods. For example, the discontinuation of Santro has boosted the demand for WagonR. Ravi Bhatia, president of Jato Dynamics, explained that demand for CNG versions of certain Maruti cars, including Wagon R, Swift, Eeco, Celerio, and S-Presso, is higher than for their petrol counterparts. Srivastava added that changes made during the past year to bring models compliant with BS-VI phase 2 emission norms have also affected the production schedule. The phase 2 criteria — implemented on April 1 this year — mandated using onboard diagnostics (OBD) systems, which enable real-time monitoring and detection of vehicle emissions-related issues.
Hyundai has four among the top 20 best-selling models in India. While the MWPs have come down for Creta and i20 during the last year, they have increased for Venue and Grand i10 Nios, according to the data. Tarun Garg, chief operating officer of Hyundai Motor India, said the company is doing everything possible to shorten their car waiting time. Owing to the ongoing shortage of electronic components, popular SUV models like Creta and Venue still have a waiting period of around two to four months. Tata Motors has three cars — Nexon, Punch, and Tiago — among India’s top 20 best-selling models. The MWP for Nexon has remained the same in the last year but has increased for Punch and Tiago in the same period, according to the Jato Dynamics data. The carmaker, however, suggested that the MWP data provided by Jato Dynamics was overstated. The waiting period for Nexon, Punch, and Tiago was not more than four months as of April 1, 2023, in contrast to the Jato Dynamics data that showed higher waiting periods — six months, seven months, and nine months, respectively — for the same models as on April 1, 2023.
A Tata Motors spokesperson said that despite an increase in demand, the company has brought down the waiting period for its products in 2022-23. “The same has been done by ramping up our production and working with our supply partners judiciously,” the spokesperson added.
