Bosch India is facing a major shortage of imported chips or semiconductors, which is impacting the company’s deliverable to the Indian automotive sector. This supply crunch will affect the Indian auto sector which is already grappling with a shortage of auto components.
Bosch is a major auto parts supplier to Indian manufacturers. Bosch’s ability to cater to the auto sector has reduced while the demand for semiconductors has risen sharply. There is a shortage of semiconductors as suppliers are pressured by high demand from consumer electronics and 5G connectivity industry amid an increased focus on safety and hygiene products due to the pandemic.
The supply crunch will cause severe implications to the auto market as a lot of the original equipment manufacturers depend on Bosch’s parts. The company is focused on handling the shortage situation and returning to normalcy.
Earlier in the week, Volkswagen Group and Continental Auto Parts also indicated that a shortage of electronic chips was hampering the production of vehicles.
The automotive sector in India was already going through a sluggish phase in FY2020, which later exacerbated amid the impact of COVID-19. The industry recovered in the second quarter of FY2021 but global supply chain disruptions remain a major challenge.
Semiconductor chips are used to manufacture automotive electronics.