If you are planning on buying a new car or upgrading to a new smartphone during this festival season, you must take note of this news. Car and smartphone prices are going up this Diwali season, and are likely to stay up till the second half of 2022.
The reason why cars and smartphones are getting more expensive during this time, and are likely to stay this way for some months, is that the shortage of components and chips. Due to this, the prices of both cars and smartphones are up by around 5 to 10 percent.
E-commerce platforms are providing cashback and festival offers on electronics including mobile phones, yet the prices remain higher as compared to last year. New models are usually launched during this time but trends show big brands re-launching old models with minor tweaks and a higher price.
Most of the smartphones on e-commerce platforms have seen a price hike of around Rs 500 to Rs 1500 around the festival season. Mobile phone developers have cited chip shortage as one of the major reasons for price hikes, which is likely to prevail halfway through 2022.
Companies like Apple are also facing issues making deliveries on time as the shortage of key components prevails. People who are opting to buy higher-end products like iPhone 13 and its variants might have to wait longer than a month to get their phone delivered.
Similar to chip shortage in the mobile phone and electronics industry, the component shortage in the automobile industry is leading to a hike in the price of moderate to high-end cars. The prices of the cars have been raised by 5 to 10 percent, as per reports.
Car manufacturers are also facing a delay in the supply chain, which is hampering the production process. As there is a component shortage, along with a higher demand for products during the festival season, reports suggest that people hoping to buy Maruti Suzuki, Mahindra, and Honda cars might have to wait for 4 to 6 months to get their keys.
