Bajaj Auto chairman Niraj Bajaj has mentioned it’s tough to foretell when the present provide shortage would finish. In a letter to shareholders, he shared short-term considerations over the scarcity of semiconductors.
“No modern automobile can exist without a slew of semiconductor chips. Motorcycles and top-of-the-line electric vehicles like the Chetak are no exceptions. It is difficult to predict when this supply scarcity will end. But till then, this will constrain your company’s production volumes, as it will for all other automobile manufacturers,” he mentioned.
The firm’s annual report for 2021-22 acknowledged that its R&D crew is engaged on the difficulty. “Our R&D team is working on this, while we are actively searching for alternate sources. Hopefully, this will be a thing of the past sooner rather than later. All said and done, there are good reasons to believe that Bajaj Auto will perform even better in FY23,” the corporate mentioned in its outlook for FY23.
The report added that Bajaj Auto had overcome the challenges posed by Covid-19 in FY21 and turned a nook. The monetary outcomes might have been even higher had the corporate not confronted the crippling semiconductor scarcity that constrained the manufacturing of the whole vary of sports activities and super-sports bikes in addition to the Chetak, the report mentioned.
The firm additional mentioned it’s dedicated to the event of electrical automobiles. The organising of Chetak Technology as a totally owned subsidiary of Bajaj Auto would support within the analysis, growth, manufacturing and sale of EVs, it mentioned. Bajaj Auto can also be increasing its world manufacturing, R&D and engineering footprint. The firm has included a wholly-owned subsidiary in Thailand to arrange an International Business Centre to supervise gross sales within the Asean area and an engineering design centre below this subsidiary.
Source: www.financialexpress.com”