Several auto companies across the globe have been impacted by parts shortage, primarily semiconductor chips
As a solution to the ongoing parts shortage, carmakers are temporarily discontinuing some of the non-essential features. The idea is to reduce impact on sales and avoid delay in deliveries that could be a greater inconvenience to customers.
MG Hector, Hector Plus discontinued features
MG Motor joins the list of companies that have been impacted by parts shortage. Dealer sources tell Rushlane that folks who have booked Hector, Hector Plus will have their cars delivered without features such as Subwoofer & Amplifier and Auto Tailgate Swipe Sensor. This applies to variants that offer these features.
In case of MG Hector and Hector Plus 6-seater, Subwoofer and Amplifier feature is available with Smart and Sharp variants. Customers who have booked these variants will be impacted. In case of Hector Plus 7-seater, Subwoofer and Amplifier feature is available with Smart and Select variants.
Talking about Auto Tailgate Swipe Sensor, this feature is available with Hector Plus 6-seater Sharp trim. Hector and Hector Plus 7-seater do not have this feature. Hector has Automatic Powered Tailgate Opening, offered with Sharp trim. The swipe feature is a lot more convenient, as the tailgate can be opened/closed with just a swipe of the leg under the rear bumper.
As these are non-essential features, Hector and Hector Plus customers are unlikely to face any major issues. Moreover, this is a temporary discontinuation due to parts shortage. As soon as stocks are available, these features will be added by the dealership. However, there is no clarity as to exactly when the missing parts will be available.
Parts shortage to continue
Even though the pandemic situation has eased in the Indian subcontinent, several parts of the world are still impacted. There are still several million active Covid cases across the globe. For auto sector, it means that parts shortage situation is likely to continue into 2023, at least. Efforts are being made to setup new manufacturing units, but supply situation may still take several months to normalize.
Apart from the pandemic, the Russia-Ukraine conflict can also impact supply of auto components. Both these countries are major suppliers of raw materials used in semiconductor chips. For example, Russia is one of the leading suppliers of palladium, a rare metal used in memory and sensor chips. Similarly, Ukraine exports Neon gas, which is widely used for manufacturing of semiconductors.
If the situation gets stretched, there could be a more severe shortage of auto parts. Another fallout is a hike in prices of auto parts, which in turn will force carmakers to pass some of the cost burden to end users. In India, carmakers like Hyundai and Mahindra have also reported production loss due to shortage of semiconductor chips and other components.