Supply chain worries for auto sector to continue even as demand improves

Industry fears Russia-Ukraine war will further dent recovery prospects as supply chains will be disrupted further

Supply chain constraints will keep plaguing auto companies even though demand significantly improved resulting in double digit increase in sales. Executives of auto companies’ fear that the ongoing Russia-Ukraine war will further dent the prospects of recovery of the sector as supply chains will face more disruptions.

In FY22, the automobile industry clocked a year-on-year growth of 13 per cent in sales.

“The visibility on the supply side is so hazy that it is difficult to give even one quarter projection. But all the parameters of demand like pending bookings and enquiries are increasing. But due to supply constraint, the