The semiconductor shortage issue and supply chain constraints that have plagued the auto industry are unlikely to be resolved this year and the situation may improve only in 2023, according to Mercedes-Benz India Managing Director and CEO Martin Schwenk.
While demand for the company’s products continues to be buoyant with order book size increasing, he said there is a concern over the global economic uncertainties and geopolitical crisis having an impact on India, thus putting a question mark over how things would be in the next six to 12 months. “The supply situation, unfortunately, has not improved. We still have shortages of semiconductors. We have congestion in the shipments and harbours. We have missing components in our production. So I would say unfortunately, the future remains very hard to predict as well,” Schwenk told PTI in an interview.
Elaborating on the impact of the issue, he said, “We have significant supply constraints still in our entire chain, which limits us in delivering as many cars as we would have wanted at the moment.