Automakers get creative to make parts whole

Waiting for a car to be delivered after booking these days is like waiting for a black PSU-made telephone to be delivered at the height of Indian socialism.But unlike the sarkar, automakers are tuned into consumer angst, and so innovative workarounds are being deployed to tackle the component shortage that's forcing the delays.These include previously-unimaginable strategies like fitting some parts at showrooms, or judgement calls like diverting supplies to better-selling models to keep production lines going.ET spoke to people across the auto supply chain. Some spoke on the condition of anonymity.Mahindra and Mahindra (M&M) has been delivering some of its vehicles to dealers without the multimedia screens and asking its suppliers to ship the parts directly to the latter for its much sought-after Thar sport utility vehicle (SUV), said people in the know.Dealers then fit the screens on the cars before selling them to customers. The arrangement saves the company up to a week's time. M&M has close to 50,000 bookings for Thar and a waiting period of up to 10 months. "Installing the screens is easy, you just have to put it in the slot and plug-in the connector," said a person in the supply chain.Tata Motors is keeping production lines rolling despite the shortage of multimedia screens for its premium hatchback Altroz. The company slots in the component in the vehicle yard as and when it arrives. "At Tata Motors, we are successfully managing the semiconductor shortfall through better planning and close coordination with suppliers," a company spokesperson said.81359736High-demand models get preferenceTata Motors has been managing the situation by adjusting production schedules and through model-mix management.M&M is increasing the production capacity both at its Nasik facility and at the supplier end to reduce the waiting period for its vehicles, its CEO of the automotive division Veejay Nakra told ET.M&M expects the shortage situation to ease by June and has also calibrated the launch timeline for its upcoming premium SUV - XUV 500 to ensure that there is enough production of the newly-launched model, if its demand is strong like Thar.Carmakers are also giving preference to their high-demand models by diverting parts and production capacity towards them. Hyundai is diverting semiconductors meant for the Santro or Grand i10 hatchback towards Creta or Venue SUVs to keep up supplies of its high-demand products.SS Kim, MD of Hyundai Motor India, had told ET in a recent interview that the company is "trying to collaborate more closely with suppliers" and that it is "trying to come up with some ideas and solutions".Even within a specific model, automakers are giving preference to the trims which are in high demand as well as the more expensive trims, which invariably have a higher proportion of chipsets.

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