The automotive industry is facing a much larger challenge than the chip crisis in the form of logistics issues due to container shortage and increase in the raw material prices, said Sunjay Kapur, President, Automotive Component Manufacturers Association (ACMA) and Chairman, Sona Comstar.
Kapur, speaking to CNBC-TV18 on Wednesday, said that the auto chip shortage issue remains in a 'wait-and-watch' situation and that they haven't seen any drastic changes in schedules from OEMs.
Kapur's comments come after Morgan Stanley released a note on Tuesday stating that the auto chip shortage issue was "in the rearview mirror". The note said that in Asia, car production is starting to recover.
Kapur, however, says recovery from the chip shortage may be visible only by the end of the first quarter of next calendar year. "It is a wait-and-watch situation and I haven't seen anything concrete come out of schedule changes from customers at this point in time,” Kapur said.
“We will have to hear from the OEMs, we will have to see on the ground, the reality of the schedules changing to really determine whether this shortage is behind us or not,” he reiterated.
Sona Comstar is an Indian origin, automotive systems & components manufacturer with a large presence in the global market. It has nine plants spread across India, China, Mexico, and the USA.
For the full interview, watch the video