Ukraine-Russia war to hit semiconductor supply temporarily: FADA

As the Indian automotive industry sees not-so-encouraging sales numbers in February, the Ukraine-Russia conflict can make the road bumpier as it will disturb the supply of semiconductors in the country.

In an interview with Business Today TV, Vinkesh Gulati, President FADA said that Russia supplies 40 per cent palladium for the semiconductor. It's not the only country, there are other suppliers also.

Short problem will be there, Gulati said, adding that Neon gas from Ukraine is not a big problem and can be managed but anything that needs a change or changing a set line involves planning and processes that disturbs the flow.

As crude inches towards new heights, Vinkesh Gulati said elections helped the industry as fuel prices remained stable, but after 10th March, the prices will go way above our heads.

The problem further is Navratri is coming up, schools are opening up, we thought this will give relief to two-wheeler but post 10th I am sure fuel price will go way above our head. Two-wheeler customers will delay purchases said Gulati.

Domestic passenger vehicle sales fell nearly 8% in February as automakers continued to reel under the global chip shortage. Total vehicle retail sales for the month of February were down 9.21 percent year-on-year.

And, while the retail sales of two-wheeler, passenger vehicles and tractors decreased 10.67 percent, 7.84 percent and 18.87 percent, respectively, three-wheeler and commercial vehicle retail sales increased 16.64 percent and 7.41 percent respectively in February.

Also read: Russia-Ukraine war to cripple semiconductor industry globally