Automobile retailers are staring at huge losses this festive season as manufacturers struggle with vehicle dispatches to dealerships amid the ongoing semiconductor shortage crisis, according to a top FADA official.
With chip shortage continuing unabated, auto manufacturers are faced with production issues forcing them to curtail supplies to dealer partners.
With the 42-day long peak season having commenced with the first navratra, dealers are finding it difficult to convince the customers to wait indefinitely for the vehicles of their choice.
Amid robust demand for several models, dealers are witnessing booking cancellations and there is also a drop in on the spot buying due to dearth of inventory at their end.
"Festive season is the most important period in terms of sales for us. On an average, the two month period accounts for 40 per cent of our total sales during a year. This is the time when we actually earn and save for operations for the rest of the year. This year we are not getting adequate vehicles and are staring at losses,"
FADA President Vinkesh Gulati told PTI.
He noted that in the passenger vehicle segment, the waiting period on most of the models has gone up drastically from the earlier period of 1-3 months.
