Semi-conductor shortage hits ABS supply chain for two wheelers

The global shortage of semi-conductors has affected the entire automobile industry. After car makers, two wheeler manufacturers have now written to the government expressing concerns about the shortage of Anti-Lock Braking Systems. CNBC-TV18 has reviewed a letter written by two-wheeler makers to the government.

Manufacturers have requested the government for help in ensuring priority allocation of ABS components for the two wheeler industry. "We have sought early customs clearances of consignments of semiconductors and other parts which are required for ABS systems," said a source.

Industry sources told CNBC-TV18 that the lack of visibility of ABS supplies is creating production uncertainty. India's largest exporter of two wheelers, Bajaj Auto, has said that established ABS suppliers have been unable to give a timeframe within which the shortage will be resolved. "We are getting only 70 percent of our ABS requirement. Production schedules are being reviewed every week due to the shortage. The premium segment has been impacted more and there is an increased waiting period for some models," said Rakesh Sharma, Executive Director at Bajaj Auto.