Omicron Spread May Impact PV Supply Again: FADA


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Omicron, a variant of the SARS CoV-2 virus is feared to trigger the third wave of COVID-19 not just in India but also across the globe.

Federation of Automobile Dealers Associations (FADA) anticipates further trouble in 2022 for the passenger vehicles supplies with the rise of Omicron cases in a number of countries of the world.

FADA believes that passenger vehicle (PV) supplies may get affected once more if countries in chip manufacturing are locked down due to the spread of the Omicron variant.

However, FADA also noted that it expects the semiconductor shortage situation to be resolved by the second half of 2022.

“We see the year 2022 as a neutral year as the rise of Omicron has once again created fear globally. This may further impact the supply in passenger vehicles if chip-making countries go under a lockdown or prioritise chip making for electronics used for work from home,” Federation of Automobile Dealers Associations (FADA) President Vinkesh Gulati said on Thursday.

He also commented on the two-wheeler segment, where there is a lot of demand headwinds, noting that it may fall further down into a slump in the case of a third wave.

According to Mr. Gulati, the auto industry may fully recover only by 2023 and come back to its pre-COVID levels if COVID becomes a history. FADA anticipates that the second half of 2022 may see supply as well as demand slowly coming back to normalcy, he added.

FADA represents over 15,000 automobile dealers having 26,500 dealerships across the country.

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