Automobile gross sales down 13% in December as chip shortages hit manufacturing

New Delhi: Regardless of sturdy demand, gross sales of passenger automobiles in India declined final month as a world scarcity of semiconductors continued to affect manufacturing, whilst calendar yr gross sales hit 30 lakh for under the third time in 2021. determine exceeded.

In line with information from trade physique Society of Indian Car Producers (SIAM), carmakers offered 219,421 passenger automobiles within the home market in December, down 13% year-on-year.

The decline in gross sales is about 8% decrease when Tata Motors’ numbers are included. Tata Motors, which has stopped reporting information to SIAM on a month-to-month foundation. Final month 35,299 passenger automobiles had been offered.

Passenger automobile gross sales within the native market grew roughly 27% to three.08 million items for the total yr 2021. Passenger automobile gross sales had earlier crossed the three million mark in 2017 and 2018.

Automakers in India report bulk dispatch from factories and never retailing prospects.

Within the third quarter of the fiscal yr ended December, passenger automobile gross sales fell 15% year-on-year to 761,124 items, primarily resulting from international chip shortages that compelled virtually all carmakers to chop manufacturing.

Two-wheeler gross sales within the home market declined 25% to three,598,299 items within the third quarter resulting from rise in acquisition prices and the continued financial affect of the second wave of the pandemic in rural markets.

Two-wheeler gross sales fell 11% to 1,006,062 items for December.

Kenichi Ayukawa, president and managing director and CEO of Maruti Suzuki, SIAM, mentioned, “The third quarter gross sales, together with the festive season, weren’t as anticipated.” “All segments are nonetheless a number of years behind. The trade is working arduous to maximise manufacturing and decrease the affect of provide constraints whereas guaranteeing the security of individuals throughout the worth chain.”

SIAM Director Basic Rajesh Menon mentioned passenger automobile gross sales within the third quarter had been largely impacted by provide constraints, whereas the two-wheeler section was hit by weak demand.

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