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Home >Auto News >Automobile wholesales dip 11% in August to 15.87 lakh as chip shortage continues

Automobile wholesale figures declined 11 per cent on annual basis as global semiconductor shortage weighed down production, stated industry body Society of Indian Automobile Manufacturers (SIAM).

The total wholesales across categories, excluding commercial vehicles, declined to 15,86,873 units last month, as against 17,90,115 units in a year ago.

A total of 2,32,224 passenger vehicle were sold during August, marking a 7 per cent increase from 2,15,916 units in the same month last year, according to SIAM data. In August, 108,508 units of passenger cars were sold. During last month, 1,12,863 units of utility vehicles were sold, while 10,853 units of vans were retailed, SIAM data showed.

SIAM's retail data showed that 23,210 units of three-wheelers were sold in August this year, 60 per cent more than 14,534 units sold in the year-ago period.

Two-wheeler sales were recorded at 13,31,436 units during the month. Motorcycle sales stood at 8,25,849 units last month as against 10,32,476 units in August 2020, down 20 per cent. Similarly, scooter dispatches declined 1 per cent to 4,51,967 units last month from 4,56,848 units a year ago.

A total of 51,204 units of passenger vehicles were exported during the month, SIAM mentioned. Meanwhile, 36,915 units of three-wheelers and 3,72,293 units of two-wheelers were exported in last month.

The total production of passenger vehicles, three-wheelers, two-wheelers and quadricycle in August was 19,84,676 units.

The Indian automobile industry is reeling under the pressure from supply chain challenges, said SIAM Director General Rajesh Menon. “The global semiconductor shortage continues and now it is having an acute impact on output across the auto industry."

The use of semiconductors in the auto industry has gone up globally in recent times, as more and more electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems are being offered with new models, besides the engine control unit.

However, the auto industry accounts for around 10 per cent of the overall semiconductor demand, with the rest coming from the electronic appliances and gadget industry, such as mobile phones and laptops, among others.

High commodity prices are increasing cost of production, the SIAM executive further added.

“Against such strong headwinds, SIAM members are working hard to meet customers' demand and expectations, while ensuring the safety of its people across the value chain," Menon said.

Looking at the cumulative sales from April to August 2021, the passenger vehicle segment is still below the level of 2016-17, the two-wheeler segment is lower than the level of 2011-12, and the three-wheeler segment is behind by many years, Menon noted.

In the passenger vehicle segment, the country's largest carmaker Maruti Suzuki India (MSI) dispatched 1,03,187 units last month, down 9 per cent from 1,13,033 units in August 2020. On the other hand, Hyundai Motor India sold 46,866 units last month, compared to 45,809 units in August 2020.

 

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