Tata Motors is looking at various measures, including direct buying from stockists and making changes in the product configurations, to offset the impact of semiconductor shortage on its production activities and sales, a top company official has said.
The auto major, which sells models including Nexon, Harrier and Safari in the domestic market, is also looking at different kinds of chips which could be used in components where the supply situation is severe.
The automaker expects the situation to remain challenging in the ongoing quarter and some improvement in supplies only in the second half of the fiscal.
“Yes, we are definitely impacted because of the uncertainty of supplies but so far we have been able to manage somehow,” Tata Motors President Passenger Vehicles Business Unit (PVBU) Shailesh Chandra told PTI when asked if the company was facing issues in its production activities due to semiconductor shortage.
He said the company is mulling reworking some of the product variants in order to minimise the production loss.
“We are looking for alternate semiconductors and at times procuring directly from stockists. We are also trying to see if a more standard chip can be used in certain components where we are facing stress. Besides, we are looking at trim mix so that we don’t lose on the sales,” he added.
The company is working very closely with chip suppliers as well to manage the situation, Chandra stated.
Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cellphones to various other electronic items.
The usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more and more electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.
