1 min read.Updated: 14 Oct 2021, 02:42 PM ISTLivemint
The semiconductor crunch and high commodity prices exacerbated problems for automakers and hit the passenger vehicle sales, said SIAM.
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Weighed down by chip shortage, India's passenger vehicle sales fell by a massive 41% when compared with the same period a year earlier, auto industry group Society of Indian Automobile Manufacturers (SIAM) said on Thursday.
The passenger vehicle segment consists of domestic cars and sport-utility vehicle (SUV). The semiconductor crunch and high commodity prices exacerbated problems for automakers, SIAM said.
"While on the one hand, we are seeing a revival in vehicle demand, on the other hand, shortage of semi-conductor chips is causing a major concern for the industry," said Kenichi Ayukawa, president of the SIAM.
The chip shortage has forced several companies to curtail production in the run-up to a month-long festive season in India, starting this month, during which people typically make big-ticket purchases, including vehicles.
The lower production has increased the waiting time for buyers, said Ayukawa, who is also managing director of Maruti Suzuki, India's biggest carmaker.
Total domestic passenger vehicle sales in September fell to 160,070 units from 272,027 units a year ago while sales of motorcycles and scooters fell to 1.5 million units from 1.8 million units over the same period, SIAM said.
Scooter sales were also down 7% at 5,17,239 units from 5,56,205 units a year ago.