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Home / Auto News / MG Motor India likely to see disruption in supply chain this month, says top official

The shortage of semiconductor chips has hit automakers globally and MG Motor India today announced that it may see a disruption in its supply chain later this month.

MG Motor India, Director – Sales, Rakesh Sidana said, "We are likely to see a disruption in the supply chain due to shortage of semiconductor chips globally as well as the second wave of covid. We may observe a few NPDs (no production days) in April 2021 as a preventive measure. We assure our customers that we will provide transparent communication to them throughout."

The shortage of semiconductor chips stems from a confluence of factors as carmakers compete with the consumer electronics industry for chip supplies.

Chip shortages have cost the global auto industry 130,000 vehicles in lost production, research firm AutoForecast Solutions estimates, with the heaviest impact in North America, with 74,000 units lost, and Western Europe, with 35,000 lost.

The chip scarcity is also a result of an increased demand from the consumer electronics industry as people worked from home and played more video games during the crisis. Sanctions against Chinese technology companies have also played a role.

Meanwhile, the company had sold 1,518 units sold in March last year, when COVID-19 induced lockdown affected sales.

In March this year, the company said it clocked the highest-ever sales for its SUV Hector and ZS EV during. With the continued momentum, the carmaker now has a waiting period of up to 2-3 months for most of the models, MG Motor India said in a statement.

Commenting on the sales performance, MG Motor India, Director – Sales, Rakesh Sidana said, "The highest monthly sales achieved in March 2021 are very encouraging with momentum continuing for our product lines."

While the Hector received over 6,000 bookings during the month, the premium SUV Gloster has continued its advance in the premium SUV segment, he added.

"MG ZS EV's increased traction is also being witnessed across various quarters including luxury buyers looking for a personal driving experience," Sidana said.

  • With inputs from agencies

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