Omicron worries may impact PV supply: FADA

‘Third wave to impact two-wheelers’

Automobile dealers’ body FADA said passenger vehicle (PV) supplies may get affected further, if chip-making countries go under lockdown due to the spread of the Omicron variant.

FADA, however, noted on Thursday that it expects the semiconductor shortage situation to normalise by the second half of next year.

“We see year 2022 as a neutral year as the rise of Omicron has once again created fear globally,” Federation of Automobile Dealers Associations (FADA) President Vinkesh Gulati said.

“This may further impact the supply in passenger vehicles if chip-making countries go under lockdown or prioritise chip making for electronics used for work from home.”

FADA anticipates that the second half of 2022 may see supply as well as demand slowly coming back to normalcy, he added.

“Auto industry may fully recover only by 2023 and come back to its pre-COVID levels if COVID becomes a history,” Mr. Gulati said.

He, however, noted that the two-wheeler segment, which continues to face demand headwinds, may further go into a slump if a third wave occurs.

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