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Chip shortage hit car supplies hard in September

The industry saw domestic sales of 167,871 units in September by the top nine companies as compared to 265,702 units sold in the same month last year.

October 01, 2021 / 03:32 PM IST
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Shortage of semiconductors rocked the production plans of carmakers resulting in a 37 percent drop in September volumes of nine companies that control 95 percent of the country’s passenger vehicle market. The industry saw domestic sales of 167,871 units in September by these nine companies as compared to 265,702 units sold in the same month last year.

Maruti Suzuki, the country’s largest carmaker, recorded a 57 percent drop in domestic wholesale passenger vehicle volumes in September to 63,111 as against 147,912 units sold in the same month last year.

The month also saw the maker of Swift and Brezza slash production by 60 percent due to shortage in supply of semiconductors. Maruti Suzuki warned on September 30 of producing only 60 percent of its normal production in October.

Hyundai Motor India, the country’s second-largest carmaker, reported a 34 percent drop in domestic wholesale volumes to 33,087 units as against 50,313 units sold in the same month last year. The company said that the global semiconductor supply constraint has adversely affected its vehicle production resulting in low dispatches.

Tata Motors, the country’s third-largest carmaker, was an outlier, recording a growth in September sales. The Mumbai-based company sold 18 percent more petrol- and diesel-powered cars in the month at 24,652 units as against 20,891 units sold in the same month last year. Its fully electric cars saw 250 percent jump in volumes to 1,078 units as against 308 units.

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Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors said, “Looking ahead, the demand for cars and SUVs is expected to remain strong in the forthcoming festive season; however, the supply situation for electronic components may continue to witness challenging times.”

Kia India maintained the ranking at the fourth spot selling 14,441 units in September, a drop of 23 percent as against 18,676 units sold in the same month last year.

Sales of utility vehicle specialist Mahindra & Mahindra (M&M) slipped 12 percent in September to 13,134 units as against 14,857 units sold in the same month last year.

Veejay Nakra, Chief Executive Officer, Automotive Division, M&M, said: “The challenges around the supply of semiconductors continue to pose difficulties for the auto industry globally. We have taken several steps to mitigate the effect and are working towards managing the situation as best as possible.”

Toyota Kirloskar said its domestic September sales grew 14 percent to 9284 units as compared to 8116 units sold in the same month last year.

SAIC-owned MG Motor recorded a 28 percent rise in retail sales to 3,241 units in September as against 2,537 units sold in the same month last year. The all-electric ZS EV recorded more than 600 bookings in September. MG entered India in 2019.

Rakesh Sidana, Director-Sales, MG Motor India, said, “Our production has reduced by almost one-third due to chip shortage. We expect this challenge to continue for the next few months. However, given the high number of bookings, we are trying our best to address the challenge and bring down the waiting period down to three months.”

On the back of demand for the Kushaq SUV, Skoda Auto clocked 131 percent increase in sales to 3,027 units in September, as compared to 1312 units sold in the same month last year.

Nissan India, which has been operating in India since 2005, said its September domestic sales grew more than three times to 2,816 units as against 780 units clocked in the same month last year.
Moneycontrol News
first published: Oct 1, 2021 03:32 pm

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