Huge Delays in Car Deliveries Amid Chip Shortage

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The global crisis of semiconductor chip shortage is affecting the supply chain and production of automobiles in the country as buyers huge delays in the delivery of vehicles. The chip shortage, which began in the first quarter of 2021 in Asia,has  hit the global auto industry hard as the demand for semi-conductors increased after COVID-19 lockdowns were lifted.

Related: The Semiconductor Chip Shortage

Almost all local assemblers are unable to carryout timely deliveries, citing chip shortage as the primary reason behind the delay. The longest wait is observed in case of the newly launched 6th gen Honda City which has a delivery time of March 2022 in case a buyer books it today. Other Honda models would be delivered in January and February 2022.

City group

The company is reported to have booked over 12,000 units after opening up the booking in May. The new model comes as a replacement of the 5th gen City which was there since more than 12 years so there was always going to be excitement for a replacement, even if its a globally retired one. An executive of the Honda Atlas while talking to Dawn, said:

“We have parts of Honda City. The delivery of the vehicles booked in May 2021 will start from 24th August.”

However, he said, the company has suspended the booking of Civic Turbo for a month owing to semiconductor chip shortage. At the same time, the company management had informed corporate analysts in a briefing held in the last week of July that it has now started double shift and is operating at maximum capacity to meet strong demand. Furthermore, the company said if pressure on rupee continues, some of the impact would be passed on to car prices.

Huge Delays in Car Deliveries Amid Chip Shortage 1

The quickest delivery schedule is of Toyota Yaris which ranges from 30 days to one and a half months followed by three to four months time in Corolla, Hilux and Fortuner alike. Delivery time of Pak Suzuki vehicles is also up to 2 months & beyond. According to Pak Suzuki spokesman Shafiq Ahmed Sheikh:

“The company is facing supply chain problems due to the delay in shipments of imported parts amid lockdown in several countries, we are trying our best to deliver vehicles as soon as possible.”

Bookings at the end of South Korean new comers are also hampered due to chip shortage as Hyundai and Kia are both affected by the crisis. In order to compensate the delay, Hyundai is offering 1 year or 25,000km free period maintenance on Tucson, currently Hyundai’s bestselling model in Pakistan.

On the other hand, MG Motors has informed its customers that the global auto industry “is facing a historic challenge relating to a serious shortage of semiconductor chips right now. This is beyond any one’s control and deliveries are being delayed for all car brands.” The company said it is working tirelessly to expedite deliveries by ensuring that every vehicle is delivered on a ‘first come, first serve’ basis. The company also promised to refund customers’ amount on request while urging them to show patience. Other Chinese automakers including Changan and DFSK are also facing issues as per information.

Related: Senate Annoyed Over Insufficient Reduction in Car Prices

Malaysian automaker Proton is also facing backlash since its unable to commence deliveries & CKD operations due to supply chain issues and lockdowns in Malaysia. The company is reportedly facing cancellation of bookings in Pakistan however it is committed to begin trial productions as soon as it receives CKD kits from Malaysia. Proton launched the X70 in December last year and Saga in April but apart from the initial batch of imported units, it is yet to commence deliveries of CBU as well as locally assembled CKD units. The delivery date as communicated by various dealerships is up to March 2022 & beyond.

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