Impact of Shortage of Raw Materials on the Manufacturing Process in Automobile Industry

Dr. S.S. Jadhav; Jai Prakash

doi:10.36676/urr.v11.i2.1425

Authors

Dr. S.S. Jadhav Associate Professor of Commerce B K D. College Chakur Distt. Latur Maharashtra
Jai Prakash Associate Professor of Commerce Pt. C.L Sharma Govt College Karnal Haryana

DOI:

https://doi.org/10.36676/urr.v11.i2.1425

Keywords:

Supply Chain Disruptions, Production Delays, Cost Escalation, Procurement Challenges, Semiconductor Shortage

Abstract

The shortage of raw materials in the automobile industry has had a significant impact on the manufacturing process, leading to disruptions at multiple levels. With key materials such as semiconductors, steel, and aluminum in short supply, manufacturers have faced delays in production schedules, increased costs, and inefficiencies in supply chain management. This shortage has also forced many companies to adjust their production strategies, often by scaling down output or prioritizing certain models, which can lead to bottlenecks in delivering products to the market. Moreover, the scarcity of raw materials drives up procurement costs, further squeezing profit margins for automobile manufacturers. The long-term effects of this shortage may include shifts towards more sustainable and alternative materials, as well as greater investment in localized supply chains to reduce dependency on global sources. Ultimately, the raw material shortage poses a challenge to both the operational efficiency and the competitive edge of the automobile industry.

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