A gradual slowdown in consumer electronics including smartphone sales has improved the overall semiconductor supply. This has turned out to be a blessing in disguise for more than half a million Indians waiting for delivery of their cars, according to a report by business daily The Economic Times.
A surge in demand for mobile phones, personal computers, televisions and appliances during the COVID-19 pandemic had led to a demand-supply mismatch for semiconductors, causing a shortage of the component for vehicle manufacturers. This caused the manufacturers to forcibly cut down vehicle production for several months in the past one year.
Also Read: How India’s semiconductor mission is shaping up to compete in global chip making race
However, the situation is now changing as consumers are prioritising their expenses on consumer electronics amid high inflation. This has led to improved supplies of chips for automakers.
The industry estimates the July dispatches of cars and SUVs from factories to be the highest ever for a month at around 350,000 units; the previous peak of 334,000 units was recorded in October of 2020. With easing of the chip shortage, they also predict fiscal 2023 sales to be a new record high at 3.5-3.7 million passenger vehicles, according to the report.
Meanwhile, Tata Motors on August 1 reported a 51.12 percent increase in total sales at 81,790 units in July 2022, driven by the strong performance of its passenger vehicles in the domestic market.
Also Read: Tata Motors July sales rises over 51% to 81,790 units
The company had sold a total of 54,119 units in domestic and international markets in July last year, Tata Motors said in a statement. Total domestic sales were at 78,978 units last month compared to 51,981 units in July 2021, a growth of 52 percent, it added.
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