Is the semiconductor chip shortage, which has hobbled the passenger vehicle industry, now hitting India’s EV market? Although the chip crisis is more severe with cars and SUVs, the crunch is now threatening electric two and three-wheeler production as well.
“Chip shortage is an issue for electric vehicles as well, particularly since in EVs there are a lot more electronics. We have been grappling with this problem for the last 6 months and trying to forge long-term contracts with the chip companies. This will continue to impact the industry for the next four quarters at least and as the EV numbers increase this could turn into a bigger issue,” said Nagesh Basavanhalli, MD & Group CEO, Greaves Cotton.
Part of the problem is how sharp the growth has been in electric two-wheelers in particular, and the overall EV segment in general. “The EV sector has performed tremendously over the last year and there has been a hockey stick growth. The current chip shortage has slowed the overall auto industry for the global and Indian markets. Overcoming the hurdle was challenging,” said Naveen Munjal, MD of e-two wheeler market leader Hero Electric.
Auto consultants say that the crisis would have been more acute had the e-four wheeler numbers been higher in India. Right now, India’s EV market is largely driven by electric scooters, three-wheelers, and e-rickshaws. “The chip shortage in India affects e-cars and some e-bikes. So, from this standpoint, the Indian EV sector’s growth momentum, which is primarily driven by e-three wheelers and e-two-wheelers is expected to continue,” said Jeetender Sharma, MD & Founder Okinawa Autotech.
