Manufacturers prepare for festival sales, push production by 20%

The supply chain is poised to witness substantial improvement compared to the previous year, thanks to the easing of component shortages

August 21, 2023

Prominent names in the automotive sector have already initiated operations at full capacity

For electronic goods like smartphones, the backlog of unsold inventory has returned to standard levels

Premium segment leaders in smartphones like Apple, Samsung, and OnePlus are projected to increase production and supplies by 15-20%

Automobile manufacturers plan to surpass one million vehicle sales this year, exceeding the 2022 figure of 892,000 units.

Automobile and consumer electronics manufacturers are gearing up for a production push of 10-20% compared to last year’s levels as they anticipate a robust rebound in demand during the festive season, according to statements from several chief executives. Additionally, the supply chain is poised to witness substantial improvement compared to the previous year, thanks to the easing of component shortages.

Prominent names in the automotive sector, such as Maruti Suzuki, Hyundai, Tata, Toyota, Mahindra & Mahindra (M&M), have already initiated operations at total capacity, a month ahead of the usual schedule. This early surge aims to tap into the projected surge in festive season sales, propelled by the supply amelioration.

The production of passenger vehicles surged by 18.4% to reach 393,094 units in July compared to June. Automobile manufacturers have ambitious plans to surpass one million vehicle sales this year, exceeding the 2022 figure of 892,000 units.

The electronics industry is following a similar trajectory, with brands and contract manufacturers forecasting the attainment of peak production capacity by early September. The backlog of unsold inventory has returned to standard levels for electronic goods like smartphones, televisions, refrigerators, and washing machines.

This positive trend has come in the wake of increased demand during July and August, prompting companies to amplify their factory output. Regarding smartphones, experts noted that while most brands are adopting a cautious approach, premium segment leaders like Apple, Samsung, and OnePlus are projected to increase production and supplies by 15-20% compared to the previous year, driven by vigorous demand in this category.

Chief executives have already predicted a demand resurgence during this year’s festive season, including for entry-level products that have been sluggish since the Covid pandemic.

Source: Economic Times

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