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Chip scarcity results in over 18% fall in November car gross sales

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Passenger car gross sales fell in double digits for the third straight month in November regardless of sturdy demand within the native market, as the worldwide scarcity of semiconductors continued to restrict manufacturing throughout automakers together with market leaders and Hyundai Motor India.

In response to knowledge out there with the trade physique Society of Indian Vehicle Producers (SIAM), passenger car gross sales final month fell 18.6% to 215,626 items. Together with the gross sales of Tata Motors, which has stopped reporting month-to-month knowledge to the SIAM, the trade quantity fell about 14%.

bought 29,778 items in November.

These are dispatches from factories to sellers and never gross sales to clients, as automakers in India don’t report month-to-month retail gross sales.

Two-wheeler gross sales dropped a steeper 34% final month. Whereas gross sales of scooters fell 39% to 306,899 items, these of bikes slid 32% to 699,949 items in November.

Two-wheeler gross sales, particularly on the entry-level, have been hit as a consequence of an increase in costs after the transition to BS-VI emission requirements and the financial affect of the second wave of the pandemic in rural areas.

SIAM director-general Rajesh Menon stated: “Business continues to face headwinds as a consequence of a world semiconductor scarcity. Within the festive season, the trade hoped to make up for the misplaced floor, however gross sales in November 2021 have been the bottom in seven years for passenger autos, lowest in 11 years for two-wheelers and the bottom in 19 years for three-wheelers.”

Three-wheeler gross sales final month totalled 22,471 items, a 6.6% drop from a yr earlier.

The affect of disruptions within the international provide of semiconductors is clearly seen now as November noticed a decline in PV gross sales, stated Saket Mehra, companion and auto sector chief at Grant Thornton Bharat. “Regardless of the demand taking pictures up through the festive season, the passenger car gross sales slipped 18% YoY and 17% MoM,” he stated, including: “Because the semiconductor scarcity continues to create an imbalance with diminished productions and stretched supply interval, the buyer sentiment is anticipated to dampen additional.”

Probabilities of restrictions as a result of Omicron variant of Covid-19 are prone to hold producers and customers on a cautious facet going forward, Mehra stated.

In the meantime, home gross sales are actually anticipated to develop with stabilisation in semiconductor provides and a discount in gas costs.

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