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Chip shortage slows down car, SUV sales by 11% in November

The drop in volumes comes at a time when the industry is sitting on an order book in excess of 500,000 units

December 01, 2021 / 04:16 PM IST
Representational image.

Representational image.

  • bselive
  • nselive
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The global semiconductor shortage has slowed down the sales for seven of India’s 13 frontline carmakers by 11 percent to 212,347 units in November.

The drop in volumes comes at a time when the industry is sitting on an order book in excess of 500,000 units, according to street estimates.

Maruti Suzuki, the country’s largest carmaker, reported a 19 percent drop in November volumes to 109,726 units as against 135,775 units sold a year ago. The Delhi-based company was able to produce only 85 percent of its normal output during the month because of the chip shortage.

“The shortage primarily affected the production of vehicles sold in domestic market. The company took all possible measures to minimise the impact,” Maruti Suzuki said in a statement.

Volumes declines by 24 percent for Hyundai Motor India in November to 37,001 units as against 48,800 units sold in the same month last year. The Korean chaebol blamed chip shortage for the drop in sales.


MG Motor India reported a 40 percent drop in November domestic sales to 2,481 units as against 4,163 units clocked a year back. Volumes were constrained for the company due to the supply shortage of semiconductors.

Some of the auto companies turned to reengineering to fight the chip shortage. While a few companies were forced to recall some features that they had introduced, others managed their product portfolio smarter in the face of the crisis.

Tata Motors, for example, bucked the trend with smart portfolio management. Its sales climbed 32 percent to 28,027 units from 21,228 units. The company sold 1,751 electric cars in November 2021.

Utility vehicles specialist Mahindra & Mahindra (M&M) had to roll back certain features in their vehicles. The company reported a 7 percent increase in November volumes to 19,458 units as against 18,212 units sold in the same month last year.

“The issues around semi-conductor related parts continue to remain a challenge for the industry. We are monitoring the situation closely and taking appropriate steps,”  said Veejay Nakra, Chief Executive Officer of the Automotive Division at M&M.

Toyota Kirloskar’s November volumes in the domestic market grew 53 percent to 13,003 units as against 8,508 units sold in the same period last year. “Demand from the market continues to be strong which is duly reflected in our booking orders and we are trying our best to cater to these orders,” Wiseline Sigamani, Associate General Manager for Sales and Strategic Marketing at Toyota Kirloskar Motor, said.

Nissan India sold 2,651 units in November in the domestic market, recording a growth of 161 percent over the same month last year, when it had posted sales of 1,017 units.
Moneycontrol News
first published: Dec 1, 2021 04:16 pm

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