Bosch India Flags Severe Shortage Of Critical Components To Indian Automakers
The Indian unit of the world’s largest auto-parts supplier is grappling with a severe shortage of imported components, hampering its ability to cater to the automotive market demand in Asia’s third-largest economy.
“Imports of Bosch India Ltd. has been impacted with severe supply shortage for imported microprocessors (semiconductors), leading to reduced ability to deliver to the automotive market demand in India,” the company said in an exchange filing on Tuesday.
Bosch, which is a key supplier to most Indian automakers, said the steep escalation of demand in consumer electronics industry driven by safety and hygiene sentiments, coupled with the rise of 5G connectivity, has led to surge in global demand of semiconductors.
The supply crunch will have implications for India’s auto industry. “For a lot of OEMs (original equipment makers), they are the single-part vendors, and they have a lot of monopoly in the Indian market,” Puneet Gupta, associate director