Cars24 Services Pvt, an online marketplace for used automobiles, expects the global semiconductor shortage to boost its business as automakers are forced to scale back output due to a lack of chips.
“New car production will be cut dramatically and that will definitely result in high demand for used cars,” said Vikram Chopra, co-founder and chief executive officer of Cars24, which is based in Gurgaon, to the south of New Delhi. “In the next six months we are going to see a pretty big impact,” he told Bloomberg Television on Wednesday.
Indian automakers are among those cutting production. Maruti Suzuki India Ltd., the nation’s biggest carmaker, expects output to plunge 40 per cent in September due to the supply crunch following an 8 per cent decline in August, while Mahindra & Mahindra Ltd. last week said September output would slide 20 per cent-25 per cent.