Although semiconductor shortage has improved to a certain extent, emerging geopolitical situation can create fresh challenges for carmakers
While Hyundai was earlier placed comfortably as India’s second largest carmaker, it’s now more of a neck and neck rivalry with Tata Motors. The latter was ahead in May 2022 with sales of 43,341 units, as compared to 42,293 units of Hyundai. While Tata Motors has been witnessing strong sales momentum, the global semiconductor shortage continues to create production bottlenecks for Hyundai.
Hyundai 1.35 lakh orders pending
According to Tarun Garg, Director of Sales and Marketing at Hyundai India, the company currently has a backlog of 1.35 lakh units on account of global shortage of semiconductors. This has adversely impacted production. Hyundai car sales are thus not a true reflection of the demand for its cars. According to the company, sales will bounce back as soon as semiconductor shortage issues are resolved.
Recent years have been tough for carmakers, as Covid pandemic has impacted component manufacturers and supply chain across the globe. Resurgence in demand after the second wave of pandemic is one of the key reasons for semiconductor shortage. Another factor is increased use of electronic components in cars, which is also responsible for shortage of semiconductors. Increased demand for electronic goods is also to blame.
While the situation is relatively better now, there’s little clarity on how things will evolve in the future. Hyundai is actively tracking global developments to ensure it can prepare itself for new issues that may impact production. Hyundai said that it is currently witnessing strong demand, although the way forward will be that of “cautious optimism”.
Venue as well as Creta continue to be the most in demand Hyundai cars. Apart from these two, other Hyundai cars are also in demand, like the i20, Grand i10 NIOS and Alcazar. Select Hyundai cars waiting period has been reduced for June 2022.
As compared to other countries, the overall impact on India’s auto industry has been relatively less. This is being made possible with the government’s push for Make in India and Atmanirbhar Bharat. However, Hyundai also says that emerging geopolitical situations can create new challenges for the auto sector.
Venue deliveries to be expedited
Hyundai is working proactively to ensure that deliveries of its popular Venue SUV can be done in a timely manner. The company is making all efforts to ensure that customers are not hassled by long delays. Venue facelift was launched earlier this month on June 16. It is available at a starting price of Rs 7.53 lakh.
Venue facelift has received exterior updates as well as several new features. Some of these include Home to car (H2C) with Alexa and Google Voice assistant, ambient sounds for a soothing ride experience, 10 regional languages support for the infotainment system, connected LED tail lamps, and drive modes of Normal, Eco and Sport. Venue also boasts of being the most connected SUV in the segment with more than 60 features available via Bluelink connectivity platform.
Till date, Hyundai Venue facelift has recorded bookings of more than 21,000 units. While petrol variants have a larger share, diesel variants too have witnessed strong demand. Bookings for Venue diesel variants are around 1/3rd of the total bookings for the SUV.