Chip shortage: Ola electric scooter deliveries delayed by up to a month

Ola Electric is moving delivery of the first batch of its electric scooters between December 15 and the end of the month, two to four weeks behind its previous schedule, due to a shortage of chipsets and electronic parts.

The first batch of deliveries was scheduled for November 30, but the company decided to delay them after a meeting between its factory team and the global supply chain on Saturday. It became clear that the late delivery of chips and electronic parts was only “getting worse”, sources said Commercial standard.

Ola apologized to customers for the delay and said he is “ramping up production as fast as possible so you can get your Ola S1 as soon as possible”. It stopped taking new bookings until the chip shortage subsided, sources said.

The shortage has hit automakers around the world. Qualcomm has partnered to provide Ola Electric with the key octa-core 4G connected Android platform that offers connectivity and compute capabilities. Qualcomm has its chips manufactured by third-party players.

Qualcomm India President Rajen Vagadia, in an interview with Business Standard late last month, said that even if his company tries to standardize all of its customers by April 2022, some industries such as the automotive industry could feel the pinch a little longer. .

The reliance on chips to power an electric vehicle can be measured by the fact that industry estimates say that a two-wheeler requires around 15-20 chips and sensors, while cars do. from 150 to 200.

“There is a problem and the situation is changing. But I think we are better off than the others because we predicted the shortage, so the impact is not that pronounced, ”said Varun Dubey, Marketing Director of Ola Electric.

Ola started bookings from September 15th and announced that he had made sales worth Rs 600 crore on the first day, reaching Rs 1,100 crore on the second. Earlier, during the second week of July, he had offered consumers the option of reserving (before reserving) the scooter for just Rs 499. While trials for customers who have booked have started, deliveries are still ongoing. expected.

Ola isn’t the only electric scooter player facing a chip shortage. Tarun Mehta, co-founder of Ather Energy, another maker of electric scooters, recently said that the delivery schedule for some chips has increased tenfold. As a result, Mehta said, the gap between booking a scooter and delivery can take up to 45 to 60 days, depending on the city.

“The delivery time for these (chips) was 3-4 weeks earlier; now it is 36-38 weeks. For growth players like us, this is a big constraint, ”said Mehta.

As a result, he was only able to sell Rs 65 crore in November although, depending on demand, he could have earned more than Rs 100-150 crore. Mehta said he hopes the shortage will ease by next March-April.

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor


Source link

Comments are closed.