Passenger vehicle sales plummet 41% YoY in September as chip shortage continues to hit production
Thursday, 14 October 2021 (15:30 IST)
New Delhi: Passenger vehicles comprising cars, utility vehicles and vans saw local sales plummeting 41 per cent to 1,60,070 in September from 2,72,027 in the same month last year as semi-conductor shortage continued to hit production of automakers.
As per monthly data released by Society of Indian Automobile Manufacturers (SIAM), car sales slumped 61 per cent in September to 64,235 units in September from 163,981 in the same month last year.
On a lower base, three-wheeler sales in domestic market recorded a jump of 54 per cent year-on-year to 29,185 during this period.
The total two-wheelers sales declined 17 per cent to 15.28 lakh in September this year from 18.49 lakh in the same month of 2020.
"The total production of passenger vehicles, three wheelers, two-wheelers and quadricycle in the month of September 2021 was 2,125,304 units, which is a drop of (-) 18.89 per cent compared to September 2020," SIAM press note said.
Total production of passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycle in July- September quarter (Q2) was 6,474,793 units. During the first half or H1 (April-September), it stood at 11,058,514 units.
“Indian automobile industry continues to face new challenges. While on one hand, we are seeing a revival in vehicle demand, on the other hand, shortage of semi-conductor chips is causing a major concern for the industry. Many members have curtailed their production plans," said Kenichi Ayukawa, President, SIAM.
"Coupled with the festive season demand, this has led to long waiting time for the customers on popular models of some segments. High raw material prices also continue to be a challenge. Industry is taking all possible measures to mitigate the impact of such supply chain issues and optimize production," he further said.
Commenting on Q2 and H1 FY 2021-22 sales data, Rajesh Menon, Director General, SIAM said that owing to the semi-conductor shortage in September 2021 there was a drop in production of about (-) 37.46 per cent for passenger vehicles and (-) 17.15 per cent for two-wheelers.
"On the sales front, barring the Covid period, H1 sales of passenger vehicles are still below 2016-17 levels, that of two-wheelers are below 2011-12 levels, that of commercial vehicles are below 2010-11 levels and that of three-wheelers are still below 2000-01 levels,” he said. (UNI)
