Business

Over 18% drop in vehicle sales in November due to chip shortage

According to data available from the industry body Society of Indian Automobile Manufacturers (SIAM), passenger car sales fell 18.6% last month to 215,626 units.

Passenger vehicle sales fell to double digits for the third consecutive month in November despite strong demand in the local market, as the global semiconductor shortage continued to limit production among automakers, including market leaders Maruti Suzuki NSE 0.05% and Hyundai Motor India. According to data available from the industry body Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales fell 18.6% last month to 215,626 units. Including sales from Tata Motors, which ceased reporting monthly data to SIAM, industry volume fell about 14%.

Tata Motors NSE 0.10% sold 29,778 units in November. These are shipments from factories to dealers, not sales to customers, as Indian automakers do not report monthly retail sales. Sales of two-wheelers fell 34% last month. While scooter sales fell 39% to 306,899 units, motorcycle sales fell 32% to 699,949 units in November.Sales of two-wheelers, especially at entry-level, have been affected by rising prices after the switch to BSVI emissions standards and by the economic impact of the second wave of the pandemic in rural areas.

SIAM CEO Rajesh Menon said, “The industry continues to face headwinds due to a global semiconductor shortage. During the holiday season, the industry hoped to make up for lost ground, but November 2021 car sales, the lowest in 11 years for two-wheelers and the lowest in 19 years for three-wheelers.

Sales of three-wheelers last month totaled 22,471 units, a decrease of 6. While November saw a decline in sales of photovoltaic panels, said Saket Mehra, partner and automotive industry leader at Grant Thornton Bharat. months, ”he said, adding,“ As the semiconductor user shortage continues to create an imbalance with reduced production and lengthened delivery times, consumer confidence is expected to decline further.

Restrictions due to the Omicron variant of Covid19 are expected to keep manufacturers and consumers on the cautious side going forward, Mehra said. Meanwhile, domestic sales are now expected to increase as semiconductor supplies stabilize and fuel prices fall.

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