Global semi-conductor shortage takes auto sales in slow lane in September
The semi-conductor shortage has intensified with the lockdown in Malaysia from Jun ’21, resulting in a severe crunch in the supply of semi-conductors in the Indian automotive industry.
Published: 02nd October 2021 09:37 AM | Last Updated: 02nd October 2021 09:37 AM | A+A A-
Representational image.
NEW DELHI: Hit hard by global semi-conductor shortage, leading carmakers reported a big drop in September 2021 sales. Country’s largest carmaker Maruti Suzuki’s (MSIL) domestic passenger vehicle (PV) sales fell 57% to 63,111 units in September 2021 as against 147,912 units sold in the same month last year.
“Sales volume of the Company in September 2021 was adversely impacted due to shortage of electronic components. The Company took all possible measures to limit the adverse impact,” MSIL said in a regulatory filing. In the short term, MSIL’s production and sales are likely to remain under pressure as it is expecting total vehicle production in October at two of its plants to be around 60% of normal levels.
Similarly, India’s second largest carmaker- Hyundai- reported a 34.2% year-on-year drop in September PV sales to 33,087 units while utility vehicle major Mahindra & Mahindra’s (M&M) PV sales slipped 12% in September to 13,134 units. “The challenges around the supply of semiconductors continue to pose difficulties for the auto industry globally,” Veejay Nakra, CEO, Automotive Division, M&M, said. Amidst this backdrop, M&M has announced opening of bookings for its XUV700 from October 7, 2021.
Kia Motors, one of the fastest growing PV brands in India, maintained the ranking at the fourth spot by selling 14,441 units in September, a drop of 23 %. Honda Cars registered a 34% drop in monthly domestic sales at 6,765 units. According to analysts, the supply side constraints could potentially hurt demand for PVs, premium 2Ws during the coming festive season.
“The semi-conductor shortage has intensified with the lockdown in Malaysia from Jun ’21, resulting in a severe crunch in the supply of semi-conductors in the Indian automotive industry. This could potentially hurt demand for PVs, premium 2Ws, and LCVs during the upcoming festive season. Sep ‘21 is expected to see the worst impact of the semi-conductor shortage and H2FY22 should see gradual improvement as Malaysian capacities have come back on stream,” said analysts at Motilal Oswal. Meanwhile, Tata Motors, Skoda, Nissan, Toyota and MG Motor have reported growth in September sales.
