Chip shortage: Hero Electric reports zero deliveries in April


Electric two-wheeler maker Hero Electric announced on Friday that it had no deliveries to dealers in April as it was hit by ongoing global semiconductor shortages that led to a halt in production.

The company experienced extreme chip shortages and supply chain constraints, Hero Electric said in a statement.

The automotive industry is still struggling with the international shortage of chips, which is causing production downtime. Hero Electric was affected and had zero shipments as of April 2022, it added.

“This has further increased the waiting list for its customers to over 60 days and some of the dealers have no stock to display,” the company said.

Sohinder Gill, CEO of Hero Electric, commented on the situation, saying it’s like applying an emergency brake to a fast-moving train.

“Our sales have almost doubled month-on-month and we’ve somehow managed to source from different regions, but the war (Ukraine) has collapsed a key supply chain, leading to this disruption,” he said.

The company has established alternative sources and would resume production soon, Mr Gil added.

“Meanwhile, we’re using this time to improve our factory capacity to increase our production volume and revamp our battery-related systems and processes to further strengthen the quality assurance of our bikes,” he said.

Referring to the recent incidents of electric scooters catching fire, Mr Gill said it was a “wake-up call for the industry”, adding: “We believe that even the best companies should review and constantly improve their designs and quality in order to build trust.” into the electric scooter mobility that’s going through such a robust growth path”.

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