Auto retailers are facing huge losses this holiday season due to chip shortages


Despite the ongoing semiconductor shortage crisis, automotive retailers will likely suffer huge losses this holiday season due to the ongoing difficulty in dispatching vehicles to dealerships.

In the face of a continuing chip shortage, automakers must curtail supplies to dealers due to production issues.

After navratra has already begun, the 42-day peak season has begun, and dealers are having trouble convincing customers to wait indefinitely for their vehicles.

In response to robust demand for several models, dealers are experiencing cancellations of bookings and a drop in on-the-spot purchases as a result of a shortage of inventory.

For us, the holiday season is the most important sales period of the year. On average, during the two months, we earn and save most of the money for the rest of the year. However, this year we are unable to order adequate vehicles and are facing losses," Tod said.

Vinkesh Gulati, president of FADA, told PTI.

According to him, the waiting period for most of the models has increased dramatically from 1-3 months in the past.

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