A truck and rare-earth magnet shortage, combined with GST-driven demand, is delaying vehicle deliveries ahead of Dhanteras and Diwali.
India's automotive industry is facing a rare combination of surging demand and shrinking transport capacity ahead of Dhanteras and Diwali.
Recent GST cuts have lowered vehicle prices, prompting buyers to seek deliveries timed with the festivals. Manufacturers, however, are struggling to meet those expectations because of an acute shortfall of commercial haulage—trucks and trailers needed to move finished cars and bikes to dealers.
Compounding the problem, a persistent scarcity of rare-earth magnets is constraining production of electric vehicles and motorized two-wheelers, undermining earlier hopes for supply normalisation from Chinese sources. With order books swelling across passenger cars, two-wheelers, consumer packaged goods and e-commerce, the transport network has been pushed beyond its limits.
Industry representatives say the convergence of elevated festive buying, transport bottlenecks and component shortages is creating delivery delays and pressuring manufacturers to adjust production and logistics plans. Some firms are ramping up shifts and prioritising allocations, but many consumers are likely to see longer wait times for festival-timed deliveries.