A global chipset shortage is set to impact the availability of consumer durables during the upcoming festival season. Manufacturers of white goods are facing production delays due to the late arrival of crucial components, which is expected to affect product availability across various categories.
“We’ve started seeing a sudden shortage of chipsets caused by production issues. This will disrupt the supply of consumer durable products and influence sales during the festival season. The delays in chipset shipments and production setbacks make it difficult to predict when the situation will stabilize,” said Avneet Singh Marwah, CEO of SPPL, exclusive brand licensee of Thomson in India, in a statement to a newspaper.
Industry experts highlight that the supply chain has been disrupted by increased tensions in the Middle East and challenges in securing chipsets. “The delayed arrival of key raw materials, including chipsets due to the Red Sea crisis, has impacted production. Companies that increased production earlier are likely to be less affected. However, alternate transportation routes are leading to further delays and higher shipping costs,” an industry expert explained.
Despite a slow start in the first half of the year due to the general elections, durable goods manufacturers are hopeful for a sales boost in the second half. They anticipate up to 40% growth this festival season. Many Original Equipment Manufacturers (OEMs) ramped up production in the first half, anticipating higher demand.
Kamal Nandi, Business Head and EVP of Godrej Appliances, stated, “The festival season kicks off with Onam in Kerala, for which we’ve already launched the Onam Maharaja offer, including extended warranties, cashback, easy EMI options, and lucky gifts worth up to ₹95,000. We expect the festive momentum to continue until Diwali, with 40% higher consumption anticipated compared to last year. Consumers can also look forward to some of the year’s lowest prices, with discounts ranging from 15% to 30%,” added Avneet Singh Marwah.
