The Automotive Component Manufacturers Association of India (ACMA) said it is monitoring the shortage of semiconductors and that the immediate impact on the auto sector is not known.
“ACMA is keenly watching the situation as it unfolds,” Deepak Jain, president, ACMA, said on Friday. “It is still not clear as to what extent and for how long the shortage of semiconductors will impact vehicle production in India.” He added that any stoppage of vehicle lines would have a ripple effect on the entire auto component manufacturing ecosystem.
Mahindra and Mahindra on Thursday said production and sales may drop in the fourth quarter due to a global supply shortage of microprocessors. Auto parts supplier Bosch had on December 8 warned of a “severe supply shortage for imported microprocessors”.
Observing that the use of electronic components in vehicles was progressively increasing, Mr. Jain said incidents such as these only precipitated the need for localisation and self-reliance in auto electronics.
In its filing to the stock exchanges, Bosch had said that the demand in the consumer electronics industry had seen steep escalations driven by safety and hygiene concerns as well as the rise of 5G connectivity, leading to a surge in global demand for semiconductors.