The Car Sector Will Lose A Billion Dollars Due To The Drop In Vehicle Production.

Due to a shortage of chips, land vehicle production will drop by one paint to 1.15 vehicle paints this month. A production cut could cost auto industry sales more than 1 billion this month, a source from the Association of Indian Automobile Manufacturers (SIAM) said.

Festivals like Ganpati and Dussehra-Diwali usually come to India in September and October, and therefore demand for vehicles is also high during these times.

The loss of 1 billion yen for the automaker in September means that annual sales are projected to fall 3 to 4 percent.

Manufacturers are struggling to get their hands on the chips. Delivery of the vehicle was also delayed due to the effect on production. As of September this year, SIAM sources said that land vehicle production is expected to range between 1.5 and 2.10 paints. 

For the past four years, vehicle manufacturers have produced between 2.50-2.50 thousand land vehicles annually as of September. Auto demand is likely to increase when interest rates are low, but automakers won't see the benefits due to a lack of chips, the sources added.

The automakers have announced this to reduce vehicle production due to a shortage of chips.