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Royal Enfield's Vinod Dasari expects semiconductor shortage to resolve in 3-4 months

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Royal Enfield's Vinod Dasari expects semiconductor shortage to resolve in 3-4 months

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A global shortage of semi-conductors has affected the entire automobile industry. Carmakers and two-wheeler manufacturers have written to the government expressing concerns about this recently. Speaking to CNBC-TV18, Vinod Dasari the CEO of Royal Enfield, expressed concern about this and said that he expects the shortage to ease out in the next 3-4 months.

A global shortage of semi-conductors has affected the entire automobile industry. Carmakers and two-wheeler manufacturers have written to the government expressing concerns about this recently.
Speaking to CNBC-TV18, Vinod Dasari the CEO of Royal Enfield, expressed concern about this and said that he expects the shortage to ease out in the next 3-4 months.
The demand for the new Meteor, revamped Himalayan and the Interceptor 650 has been good.
“This year fortunately we have a very good demand, we have a huge backlog and yes there are these sporadic problems here and there. We have to maintain all safety protocols and SOPs that have been laid out,” Dasari said.
The industry is also grappling with imposed across the country due to a surge in coronavirus cases,
“Industry now knows how to operate in this kind of environment. Supply chain constraints will come and go that is short-term, I think in the long run the automotive industry has learnt to deal with things in a newer way,” Dasari analysed.
On growth, he said, “There will be some supply chain constraints and that will carry over into a couple of months into the future, but we have to make the deliveries. I personally don’t think FY22 will be worse than FY21. Having said that who can predict what will happen with COVID. Nobody had estimated COVID 2.0 would come back strongly and I don’t know how long it will last, vaccinations are also going faster. I will say that look this will last for another one month or so and after that things will start to come down as it did in the past, as fast as it went up, hopefully, it will come down just as fast.”
He added, “It is a short-term glitch, I don’t see that as a long-term problem at all.”
On metal prices affecting the auto industry, Dasari said, “In premium bikes or in premium areas it has a lesser impact. We have passed on quite a bit of the material cost increase. There are two types of commodity that are also going up - one is the precious metals which take care of exhaust gases and all that - that has shot through the roof. Things like steel, I don’t know why there is an import restriction, steel prices in India have gone up by 20 percent doesn’t make any sense. I think there is something that the government can also do to help reduce the impact of this commodity increase.”
Watch the accompanying video for the full interview
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