Due to production constraints caused by a global shortage of semi-conductors, passenger vehicle sales remained sluggish last month, despite robust demand in the local market.
Last month, the passenger vehicle segment sold 294,872 units, down 3% from the 303,398 units sold the year before.
In India, automakers mainly report wholesale dispatches from factories to dealers, rather than retail sales to customers.
Market leaders Maruti Suzuki and Hyundai Motor India saw sales fall 7% (to 128,924 units) and 15% (to 44,022 units), respectively, dragging down industry volumes.
“The electronic component scarcity had only a minimal influence on the production of automobiles principally sold in the domestic market.”
In a statement, Maruti Suzuki claimed, “The business took all reasonable precautions to minimize the damage.”
Hyundai, a Korean competitor, is also keeping a careful eye on the current semiconductor supply shortage.
According to the company, it will make every attempt to accommodate customer demand.
While chip availability has improved in recent months, senior industry officials expect the situation to take some time to normalize.
Meanwhile, Tata Motors, the country’s largest automaker, saw its highest-ever passenger vehicle sales in January, with 40,777 units sold.
Kia India also saw a little increase in volume during the month under review.
Last month, the company sold 19,319 units, compared to 19,056 units the year before.
“We are kicking-starting the new year with positive sales growth and a new product on offer for our discerning Indian clients,” stated Hardeep Brar, VP, and Head of Sales & Marketing, Kia India.
We’re encouraged by the market’s response since all of our products have consistently performed well month after month.”
The supply chain constraint is expected to last until early 2022, according to Kia India, but with careful planning and market forecasting, the output will stay constant concerning current market trends.
Beginning in the second quarter, the business anticipates the semiconductor situation to improve.
Mahindra & Mahindra (M&M) saw a 3% drop in sales to 19,964 units.
Honda Cars India reported an 8% reduction in January sales to 10,427 units.
Due to a rise in acquisition costs and the economic impact of the second wave of the pandemic in rural regions, sales of two-wheelers, particularly at the entry level, have been under pressure.
Last month, two-wheeler sales at TVS Motor Company fell 22% to 167,795 units.
Bajaj Auto, based in Pune, sold 135,496 units in January 2021, down 14% from 157,404 units in January 2021.
Tata Motors, the market leader in commercial vehicles, saw sales rise 3% to 31,708 units in January.
Last month, tractor sales fell, although from a high base.
In January, Mahindra tractor sales plunged 37% to 21,162 units.
M&M’s president (agricultural equipment sector), Hemant Sikka, is optimistic that volumes would increase in the coming months.
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