Automobile wholesales skid 23% year on year in February amid supply chain snags

Automobile dispatches dip in February as supply-side challenges continue (Representative Image)

Automobile dispatches to dealerships fell 23% in February 2022 from a year earlier, said Society of Indian Automobile Manufacturers (SIAM), as semiconductor shortage, increase in vehicle prices due to new regulations and other factors continued to affect demand.

Domestic passenger vehicles, two-wheelers, and three-wheelers wholesales fell to 13,28,027 units from 17,35,909 units in February 2021.

Overall passenger vehicle deliveries fell 6% to 2,62,984 units in February 2022. Wholesales of passenger cars, which form a subset, stood at 1,33,572 units last month as compared with 1,55,128 units in February 2021.

Utility vehicle dispatches grew to 1,20,122 units from 1,14,350 units in the same period last year.

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Van wholesales fell to 9,290 units last month from 11,902 units in February 2021. Similarly, total two-wheeler dispatches declined 27% to 10,37,994 units. Wholesales of scooters fell to 3,44,137 units from 4,65,097 a year ago. Last month, motorcycle dispatches declined to 6,58,009 units from 9,10,323 units in February 2021.

Also Read: Automobiles continue bumpy pandemic ride as retail sales down 9% in February

Similarly, three-wheeler sales fell to 27,039 units from 27,656 units in February 2021.

"Continuing supply-side challenges like semiconductor shortages, increase in cost due to new regulations, higher commodity prices and higher logistics cost, etc., have impacted overall sales in the auto industry," SIAM Director-General Rajesh Menon said.

The industry is closely watching the possible impact of the ongoing Russia-Ukraine conflict, as global supply chains could come under stress, he added.

Also Read: Semiconductor shortage hurts business, impact of Russia-Ukraine war minimal: Rakesh Sharma of Bajaj Auto