In the Indian car industry, shortage of semi-conductors has become a matter of concern ahead of the festivals. As compared to last month, the companies reported lower deliveries to dealerships in the month of August.

The production schedule of companies like Mahindra & Mahindra, Maruti Suzuki, and Tata Motors has been impacted by the chip supply crunch. The companies said that on the shop floor, they are forced to go slower even though the demand is high.

A nine percent decline in wholesale deliveries has been reported by Maruti, the top carmaker of the country. The decline clearly shows the companies have been facing troubles. Maruti said that the company has a pending customer backlog of around 1.5 lakh cars, but semiconductor shortage is striking the production.