The country’s second-largest passenger car manufacturer, Hyundai Motor India, is sitting on a backlog of 135,000 bookings as a chip shortage has slowed down production.
In terms of models, the highest pending bookings are of its SUV, the Creta, at 50,000, followed by the compact SUV Venue at 27,000; the hatchback Grand i10 Nios comes next at 18,000.
The waiting period for the Creta is seven months, it is five months for the Venue and three months for the Grand i10 Nios. Tarun Garg, director – sales, marketing, and service, Hyundai Motor India, told FE that the company is doing its best along with its parent, Hyundai Motor Company, in terms of procurement and production. He added that the automobile industry may fully recover from the chip shortage in the calendar year 2023.
“Although things (with regard to the semiconductor shortage) have improved, all the pain is not over yet. We expect the situation to be much better in the second half of CY22 compared to the first half. The industry will recover from it completely maybe in CY23,” Garg said.
On the steps being taken by the company to deal with the semiconductor shortage, Garg said that they are flexible in terms of model mix and variant mix. “We are working very closely with procurement, production and R&D teams on the flexibility that we can show, in case we need to change some features, introduce some new variants or adjust the production,” he said.
Hyundai achieved domestic volumes of 510,260 units in CY19. While there was a drop to 423,642 units in CY20 owing to Covid, the volumes improved to 505,033 units in CY21. The company has sold 218,966 units during the January-to-May period of CY22 and is well on course to cross the pre-pandemic levels this calendar year.
While the share of diesel variants in the domestic volumes of the company had decreased to 22.8% in CY20 and 24.1% in CY21 from 26.9% in CY19, it has improved to 27.4% in CY22 (January-May period).
So far in CY22, diesel variants have accounted for 60% of the volumes of the Creta, 78% of the Alcazar, 64% of the Tucson, and 23% of the Venue. Hyundai offers 1.2-litre CRDi and 1.5-litre CRDi diesel engines, depending on the vehicle.
“We have a very clear strategy. In entry-level models like the Grand i10 Nios and the Aura, the focus is more on petrol and CNG options. In SUVs and mid-size sedans, there are petrol, turbo-petrol, and diesel options. This kind of strategy is serving Hyundai very well to increase volumes,” Garg said.