PV makers to see cumulative earning loss of Rs 2,000 crore in FY22: Icra

The industry is estimated to lose production of 500,000 units at the end of FY22 due to chip crunch

Passenger Vehicle makers are likely to see their cumulative earnings at an operating level erode by Rs 1,800-2,000 crore in the year ending March 2022 on account of the shortage of semiconductors, rating agency Icra said at a webinar on Wednesday.

The industry, it pointed out, is estimated to lose production of 500,000 units at the end of FY22 due to the chronovc shortage the chip, which is critical in safety, entertainment and the various other smart features of a car.

“In absence of the chip crisis, the industry volumes are likely to have exceeded the all-time peak annual volumes.”