Most automobile manufacturers are facing a shortage of semiconductors as of late. Mahindra is trying to come up with a plan to reduce the amount of chip usage in their models. Mahindra will be offering customers the option of attaining their cars quicker, by dropping a few features. Their variant lineup may be revamped to overcome the chip issue. The Mahindra XUV700 is expected to be delivered without turn indicators and a second key fob temporarily, but it will be installed later on. Mahindra had informed customers and dealerships prior about this inconvenience.
The top-end variants of the Mahindra XUV700 have a need for more semiconductors than the lower variants as the former has more features and specs. The XUV700 top-end model uses 170 chips and some of it is used for the ADAS. The XUV700 has 70,000 bookings for this year.
Chip shortage: Other automakers
There was a semiconductor chip shortage back in January as well, Skoda and Volkswagen had introduced the Kushaq and Taigun. The automakers had to remove the auto-folding ORVMs from both these models due to the shortage. They also announced that the auto-folding feature will be available later on as an accessory in dealerships. The chip shortage may last longer due to the ongoing Russia and Ukraine war. If this shortage continues, manufacturers will find it really difficult to cater to customers’ requirements.
Other carmakers like Tata have been working together with British brands like Jaguar and Land Rover to help with overcoming the shortage. The brand has switched to general-purpose microchips instead of any application-specific ones. For Tata, this has helped majorly in reducing the number of chips that are required for each car. This also helps Tata in keeping production steady.
Even though the demand for many vehicles has dropped ever since the shortage, the demand for new vehicles is only going uphill. Moreover, due to this unfortunate circumstance, the waiting period for some cars can even go up to months. The shortage has increased the demand for used cars as there is barely any waiting period.