Hyundai Motor India expects semiconductor shortage issue to improve

According to a senior corporate official, Hyundai Motor India anticipates improvement in the semiconductor scarcity issue and the emergence of a clear image of the competitive scenario in spite of current production constraints. 
 
Tata Motors and Mahindra & Mahindra, two domestic automakers that are benefiting greatly from the success of their new SUV models, have been fierce competitors for the second largest passenger car manufacturer in the domestic market by volume. 
 
In addition, Maruti Suzuki India has intensified its preparations for SUVs with the introduction of the new Brezza and Grand Vitara. 
 
Hyundai Motor India Ltd, the manufacturer of the well-known SUVs Creta and Venue, has 1.3 lakh pending orders as the holiday season approaches.

Hyundai Motor India Limited

According to Hyundai Motor India Director (Sales, Marketing and Service) Tarun Garg, “2022 is more driven by the chip issue, therefore the true situation of demand would only emerge after we are ready to produce without limits of semiconductor supplies and that is sometime away.” 
 
He was responding to a question about whether the business would be able to dominate the SUV market this year given how fierce the competition is. 
 
It is really difficult to tell right now, but Garg said that things should get better in 2023 and that’s when the genuine demand issue will start to play a role. 
 
He said that for the corporation, the demand certainly exceeds the supply. 
 
“There is no doubt that the competition is growing. More and more models are being released. “This is where the growth is, as 80–90% of the models launched in the last few years have been in the SUV space,” said Garg. 
 
Domestic passenger vehicle sales in the April-June quarter were 9,10,431 units, up from 6,46,272 units in the corresponding period of FY22. 
 
Additionally, the company’s decision to keep selling diesel vehicles, which are in high demand in areas like Madhya Pradesh, Rajasthan, and Telangana, is a plus. 
 
Given the geography of India, Garg said, “Diesel (sector) is quite important in some states. Demand is constantly rising in these places. It is still very relevant. It is still a very powerful offering. 
 
He pointed out that the domestic passenger car market, which numbers 30 lakh vehicles, accounts for 41% of the overall SUV segment, which is growing at a rapid rate.