scorecardresearch
Follow Us:
Friday, September 17, 2021

Demand up but chip shortage slows down auto output, sales

Market leader Maruti Suzuki India Limited announced passenger vehicle sales of 103,187 units in the domestic market in August — down 8.7 per cent over August 2020 and 22.8 per cent lower than sales in the previous month.

By: ENS Economic Bureau | New Delhi |
Updated: September 2, 2021 10:39:51 am
Maruti Suzuki cars at the plant’s stockyard in Manesar. (File)

Even as consumer demand remains buoyant, semiconductor shortage hit auto sales in August with leading manufacturers going for moderation in production on account of shortage in supply of key electronic components. Almost all leading manufacturers witnessed a dip in sales in August over July 2021.

Market leader Maruti Suzuki India Limited announced passenger vehicle sales of 103,187 units in the domestic market in August — down 8.7 per cent over August 2020 and 22.8 per cent lower than sales in the previous month.

Hyundai Motors which reported wholesale of 46,866 units in August witnessed a marginal growth of 2.3 per cent over over last year but saw a month-on-month dip of 2.4 per cent. Even Tata Motors, the third largest PV manufacturer, that sold 28,018 units in August reported a 7 per cent decline in sales over previous month, though its sales over the corresponding month last year was up 50 per cent. The company sold 1,022 units of EVs in August, its highest in a month.

Mahindra and Mahindra which despatched 15,973 units in August also saw a month on month decline in sales of 24 per cent and Toyota Kirloskar Motors saw a month-on-month decline of 2.4 per cent in sales at 12,772 units in August.

While MSIL said that sales in August 2021 were “affected due to electronic components shortage”, and the company has been taking all possible measures to limit the adverse impact, Tata Motors said that semiconductor shortage continues to impact the auto industry globally. Senior officials with leading manufacturers say that the rise in bookings alongside moderation in production (on account of chip shortage) has resulted in jump in waiting period. “The waiting period for some of our models have jumped from around 45 days to 5-6 months now,” said an official with a leading manufacturer.

The entire industry remains vigilant about the supply side issues and Covid situation. Honda Cars India sold 11,177 units in August and witnessed strong y-o-y growth of 49 per cent and m-o-m growth of 85 per cent. It, however, said while it is optimistic about demand side going forward, it is carefully monitoring the “prevailing supply side issues affecting the industry and any future Covid-related disruptions.”

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement
Advertisement
Advertisement
Advertisement