Tech view: Use dips to add auto stocks despite chip shortage concerns

Maruti Suzuki, Tata motors and M&M may see weakness at current levels, but the medium-term trend is highly bullish

The shortage of semiconductors and chips is hitting the Indian automobile sector hard. After Tata Motors, India's biggest car manufacturer Maruti Suzuki India has slashed output target for September due to a chip shortage.

On Tuesday, Maruti Suzuki said that its vehicle production in September will tumble by 60 per cent. The company, which had earlier cut down production at its Gujarat plant, said the chip shortage will hit production in Gurugram and Manesar plants, effectively forcing the automaker to cut production by 60 per cent. READ ABOUT IT HERE

Consequently, shares of the automaker declined 2 per cent to