Semiconductor crunch, long waiting periods pushing the resale value further up
2 min read . Updated: 29 May 2022, 07:44 AM IST_1567671232783_1653790349590.JPG "MG Hector.")
Premium- Disruption in the supply chain has adversely affected the production of cars
- Long waiting periods has caught on the patience of prospective customers
The Economic Survey for 2021-22 stated – Shortage of semiconductors led to closure or lowering of production by several firms from diverse industries. The report recognized Semiconductors as integral part of technology used in automobiles and its components, electronics etc. Such disruption in the supply chain has adversely affected the production of cars that offer increasing integration of connected features, infotainment and intelligent safety systems.
The Society of Indian Automobile Manufacturers (SIAM) quantified the impact of semiconductor shortage, as it noted the domestic market slump to 17.51 million units in 2021-22; lowest since 2012-13, with almost similar numbers. Such a demand-supply gap has resulted in waiting timelines for aspiring buyers' dream cars ranging from 5-6 months to a year.
This trend of long waiting periods has caught on the patience of prospective customers, who are turning to pre-owned cars. The rush for pre-owned cars on the other hand is making these cars dearer, which is benefitting the previous owners, who are getting reasonably higher resale values of their vehicles, when compared to the global pre-lockdown period.
MG has caught the imagination of customers, including those who have owned a luxury brand car. MG cars come as value for money machines, as their owners have known to get industry best exchange & resale values ranging from 80% to 100% for their SUVs.
An owner of Hector Plus Sharp DCT in Bengaluru, on selling his car realised a value of 96% after 9 months of ownership for the SUV which he purchased in the month of Dec. of year 2020 at Rs. 18,49,569. The car was further sold for Rs. 17,60,000 in August ’21.
Next, is an owner of Hector Sharp DCT who got 92% value for the car after little less than 2 years of ownership of the car which he bought for Rs. 17,35,180. The SUV went for Rs. 15,80,000 in October last year.
Another Hector Smart MT got it’s customer almost 94% resale value in Oct. ’21 after 2 years of ownership and the car was sold for Rs. 14,50,000.
An earlier instance, when a customer who had bought Hector Plus Diesel in Oct ’20; upgraded to Gloster 6 Savvy top trim. The transaction got him a resale value for his Hector Plus of 93.7% for the car after 6 months. He exchanged his Hector Plus at Rs. 17 lakhs.
MG Hector offers 5-year/Unlimited KMs warranty, 5-year Roadside Assistance, and Free Labour Charges for the first 5 periodic services.
Hector comes loaded with features like Hinglish Commands, iSMART connected car technology, Wireless Charging, and Ventilated Seats. Its noteworthy features include a 360-Degree Parking Camera, 6 Airbags, Bold Thermopressed Front Chrome Grille, 18-inch Dual-Tone Alloys, and dual-tone interior and exterior options.
