Hyundai Is Handling The Semiconductor Chip Shortage Better Than Most

Sep. 03, 2021 2:45 PM ET by Sebastian Cenizo Industry News / 8 Comments

While others slow production, the Korean giant is proceeding at a steady pace.

Hyundai has been working hard on advancing technology. It has just revealed a driverless taxi and is looking forward to a hydrogen-powered future. The Korean automaker has also just revealed a tiny new SUV that is likely to be sold mainly in Asian markets, although Europe could get it too. New technology and new cars are all good and well, but with the ongoing semiconductor chip shortage plaguing the entire industry, one can't help but wonder when the cars that automakers currently offer will be available, let alone the new ones that have been revealed. But according to a report from Money Control, Hyundai isn't struggling much at all and continues to maintain steady production.

2020-2022 Hyundai Venue Front Angle View

The report focuses specifically on Hyundai in India, where the country's other biggest automakers Maruti Suzuki and Mahindra & Mahindra are cutting production due to the chip shortage. However, Hyundai has been a step ahead of the competition and has "managed to change its model mix and prioritize products that are in demand to tide over the current crisis."

"The semiconductor supply issue is a common issue for all OEMs and everyone is under the same challenging conditions," says Hyundai Motor India's CEO SS Kim. "But the results are totally different depending on their operational efficiency, flexibility, and manpower dedication. My message to our factory is to be more flexible and creative and agile. I am sure they will come up with many good solutions to meet customer demand."

2020-2022 Hyundai Venue Infotainment System

It's this creative approach to production management that has seen Hyundai maintain operation of its production lines in India despite multiple shutdowns from competitor brands. Maruti Suzuki alone has announced a 60% production loss for this month, but Hyundai's sales and marketing team says that it usually operates on a 30-day inventory, and its current inventory is at that level. Thus, cars sold there - like the Hyundai Venue - continue to be available. If Hyundai's prediction that the shortage will not get any worse than it currently is proves true, the Korean automaker will come out of the crisis on top, with more sales and more consumer confidence than its rivals.