Home / Companies / News /  Semiconductors shortage to impact Ford's production in India

NEW DELHI : The global shortage of semiconductors will impact production of US auto major Ford's plants in India in the coming months, even as the company advances a scheduled week-long shutdown to this week at its Chennai factory, according to a company official.

Ford India, which has two factories in Chennai (Tamil Nadu) and Sanand in Gujarat, expects the issue that is affecting the entire automotive sector to continue for at least the first half of 2021.

"The global semiconductor shortage will impact vehicle production at Ford's Chennai and Sanand plant in the coming months," a Ford India spokesperson said in a statement.

The spokesperson further said, "In Chennai, we have pulled ahead a down week to this week due to a supplier part shortage connected to the global semiconductor shortage."

The company is working closely with suppliers to address production constraints tied to the global semiconductor shortage and working to prioritize key vehicle lines for production, making the most of its semiconductor allocation.

"This issue is affecting the entire automotive sector and expected to continue for at least the first half of 2021," the spokesperson added.

Ford India exports a significant portion of vehicles produced from its two plants. In December 2020 its production was down 42.96% at 6,943 units.

The company's domestic sales were at 1,662 units, down 45.06% from the year-ago month, whereas its exports were at 6,992 units, a decline of 53.83% from December 2019.

In the April-December period of the ongoing fiscal, the company's production stood at 64,867 units, down 55.87% from the year-ago period.

Its domestic sales in the April-December period were at 30,380 units, down 40.43% while exports were at 39,775 units, a decline of 62.51%.

Last month, due to the semiconductor shortage issue supplied by Bosch Ltd, homegrown auto major Mahindra & Mahindra had also stated it was expecting reduction in production and sales volume at its automotive division and in its wholly-owned subsidiary in the last quarter of the current fiscal.

Bosch Ltd, a major supplier, had stated that its imports of micro-processors (semiconductors) have been hit following a global surge in demand from the consumer electronics industry.

At that time, auto components industry body ACMA had said it was still not clear as to what extent and for how long the shortage of semiconductors will impact vehicle production in India.

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