Looking for alternatives to deal with semiconductor shortage, says Tata Motors

by Jeremy

Meanwhile, Tata Motors, on Monday, launched its premium flagship SUV, the all-new Safari. The Safari will have a starting price of Rs 14.69 lakh (ex-showroom Delhi) for the 6/7 seater.

Tata Motors said on Monday it was not fully protected against the shortage of semiconductors but was looking for alternative solutions wherever possible to keep its production lines going.

 

Speaking to reporters on the sidelines of the launch of the flagship SUV Safari, Guenter Butschek, CEO and managing director, Tata Motors, said that while the semiconductor supply was a challenge, it had not reached levels where Tata Motors needed to panic. “We are cautiously optimistic. However, we are not fully protected at this point. But there is no reason to get into a panic because the situation still seems to be under control,” Butschek said.

He said the company was also working on finding alternative solutions to use parts instead of semiconductors in its existing product line. He also said that the company was fully prepared and could shift the production sequence to models that could be produced without these particular components not to lose production capacity. While this may affect demand, the company is working on solutions to keep the bare impact minimum, Butschek said.

A shortage of semiconductors has hit the automobile sector as the demand from user industries has outstripped supply. It will take some time for the new capacities to be created. According to reports, the shortage is impacting production and imports in the automobile sector in India. Experts say the need will not be fulfilled anytime soon, and supply will take a while to recover.

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