Homegrown auto major Tata Motors is optimistic that the supply constraint of semiconductors that has impacted its commercial vehicle production will be back to normal by the second half of the next fiscal, according to a senior company official.
The company, which had hiked prices in October and January to offset the impact of rising commodity rates, is looking at taking a similar step in April in the wake of continued increase in steel and other raw material prices.
“In H2 (the second half of the ongoing fiscal), we have also seen semiconductors becoming a major constraint. This is something which has actually affected us in commercial vehicles (CVs) also,” said Girish Wagh, president of commercial vehicle business unit, Tata Motors.
Stating that the semiconductor supply constraints started from November, he said, “We have seen some impact. Initially, it was on small commercial vehicles (SCV) and later we have also seen some impact happening in medium and heavy commercial vehicles (M&HCV).”
In terms of the actual impact on production, he said it varies from segment to segment with the “highest in SCVs and the least in I&LCV (intermediate and light commercial vehicles)”.
To overcome the challenge, the company has taken several steps, including engaging with suppliers and talking to semiconductor manufacturers to get some of the consignments faster.
On being asked how long the issue is likely to continue, Wagh said, “The impact should go on gradually reducing. Towards the end of Q2 and beginning of H2, we should be seeing the supply side completely on track but the situation is indeed very very dynamic.”