Auto industry ‘may fully recover only by 2023’
India’s Federation of Automobile Dealers Associations anticipates that the second half of 2022 may see supply as well as demand slowly coming back to normalcy. (Photo by MONEY SHARMA/AFP via Getty Images)
INDIAN automobile dealers’ body FADA on Thursday (23) said passenger vehicle supplies may get affected further if chip making countries go under lockdown due to the spread of the Omicron variant of the coronavirus.
The industry body, however, noted that it expects the semiconductor shortage situation to normalise by the second half of next year.
“We see the year 2022 as a neutral year as the rise of Omicron has once again created fear globally. This may further impact the supply in passenger vehicles if chip making countries go under a lockdown or prioritise chip making for electronics used for work from home,” the Federation of Automobile Dealers Associations (FADA) president Vinkesh Gulati said in a statement.
The FADA anticipates that the second half of 2022 may see supply as well as demand slowly coming back to normalcy, he added.
“Auto Industry may fully recover only by 2023 and come back to its pre-Covid levels if Covid becomes a history,” Gulati said.
He, however, noted that the two-wheeler market which continues to face demand headwinds may further go into a slump if a third wave becomes a reality.
FADA represents over 15,000 automobile dealers having 26,500 dealerships across the country.