Daijiworld Media Network - New Delhi

New Delhi, Oct 4: The festive season has brought cheers to the automobile industry with a surge in bookings following GST cuts and price reductions, but manufacturers are now struggling to deliver vehicles on time due to logistics bottlenecks and shortage of key components.

Customers are eager to take delivery of new vehicles around Dhanteras and Diwali, but companies are facing a severe shortage of trucks and trailers, while the scarcity of rare earth magnets from China is further delaying production — especially in the electric and two-wheeler segments.

Industry officials told TOI that the sudden spike in demand for deliveries across automobiles, FMCG, e-commerce, fashion, and lifestyle sectors has put immense pressure on the trucking network. “Add to this the usual gifting rush around Diwali and you have a problem that is increasingly becoming challenging to solve,” an industry official said.

Nalinikanth Gollagunta, CEO of M&M’s automotive division, said, “Surge in festive demand has led to significant constraints on availability of trailers. We are working to improve dispatches to our dealer network within constraints.”

Maruti Suzuki too is facing challenges, with 2.5 lakh pending deliveries. “Most customers want their cars around Diwali. We are working overtime and even using railways to ensure faster dispatches,” said Partho Banerjee, Senior Executive Officer (Marketing & Sales).

Amit Kamat, Chief Commercial Officer at Tata Motors Passenger Vehicles, noted that demand for trailers surged after September 22, when new GST rates came into effect. “We expect this to be temporary and are working closely with logistics partners to ensure timely Diwali deliveries,” he said.

Luxury automakers are not spared either. Hardeep Singh Brar, President and CEO of BMW Group India, said, “Customers prefer delivery on Dhanteras and Diwali. This year, demand for those specific days is much higher due to pent-up bookings from August and September. Initial logistics hiccups are now being streamlined.”

The two-wheeler sector too faces pressure as demand outpaces production amid shortage of rare earth magnets. A senior industry official said, “The price cuts have driven huge demand for scooters and motorcycles, but the magnet supply issue is hampering production and slowing deliveries.”

Despite the challenges, manufacturers say they are working round-the-clock to meet festive expectations and ensure customers get their dream vehicles before the lights of Diwali shine bright.