LAHORE: The supply chain crunch has gripped the automotive industry globally causing car manufacturers to halt production multiple times this year resulting in customers getting delayed deliveries.
The shortage of essential semiconductor chips, which is now affecting not just automobiles but also consumer tech, has been no different in Pakistan.
The shortage of the semiconductor chips has meant that nearly all car manufacturers have had to halt production of some of their vehicles resulting in customers experiencing delays in vehicles they had booked earlier. The shortage is not good for anyone, and has been estimated to cost automakers internationally $110 billion in lost revenues this year.
For Pakistan, things are even worse because of the precarious position of the country’s automobile industry in recent times. The 2019 financial crisis saw car prices skyrocketing, and the pandemic in 2020 saw Honda, Toyota, and Suzuki all halting production because of low demand. Despite this, new entrants like KIA and Hyundai entered Pakistan and brought diversity to a car market that has largely been restricted to just three manufacturers for decades. The latest new entrant MG has been received enthusiastically by consumers.
However, ever since the chip shortage issue, MG has been the target of criticism on social media and other places which states that the reason of delays is overbooking of cars, a lack of dealership network and unavailability of car parts.
Refuting these claims, MG has explained time and again that delays are happening because of the global semiconductor shortage. The company has also indicated that it feels the negative news being spread about them is the result of a targeted activity to drive customers away from the company.
“We assure that we are in Pakistan and we will not deviate from our goal to increase consumer value in the automotive industry. No power on earth can crush MG resolve for a better Pakistan,” they said in a recent statement.
Company sources informed Profit that MG has no good reason for late deliveries to their customers, and that there really is a global semiconductor shortage that is causing delays not just for MG and other car manufacturers in Pakistan, but all over the world.
It may be noted here that MG is one of the new entrants which is in the midst of revolutionising the automotive landscape of Pakistan by introducing the MG ZS EV – the first EV in its segment.
With the introduction of MG and other players, new cars are coming in the market with advanced technology and the best in class safety features that have been missing from Pakistan’s car market up until now.
Moreover, company sources informed that despite campaigns accusing it of fraudulent activity, MG is actually growing quite rapidly in terms of vehicles delivered and dealership network and that they have also recently successfully defended all allegations of under invoicing with the support of Chinese Customs.
“While there have been delays because of the supply chain block caused by the pandemic, MG has time and again reassured its customers that it will honor all of its commitments,” sources concluded.
The supply chain crunch has gripped the automotive industry globally causing car manufacturers to halt production multiple times this year resulting in customers getting delayed deliveries.