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Chip shortage pulls down passenger vehicle sales in September

Source: PTI
October 01, 2021 22:39 IST
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The global semiconductor shortage hit passenger vehicle sales in September, with major manufacturers like Maruti Suzuki, Hyundai and Mahindra & Mahindra reporting a decline in sales on Friday.

Kia India and Honda Cars also reported a dip in wholesales last month as compared with the year-ago period.

Carmakers like Tata Motors, Toyota Kirloskar Motor, Nissan and Skoda, however, reported an increase in passenger vehicle dispatches last month despite supply chain issues.


The country's largest carmaker Maruti Suzuki India (MSI) said its domestic sales slipped 54.9 per cent to 68,815 units last month as against 1,52,608 units in September 2020.

"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," the auto major stated.

Barring exports, the company reported a dip in all segments, including utility vehicles and compact hatchback dispatches in September.

Similarly, Hyundai Motor India reported a 34.2 per cent decline in September wholesales owing to the semiconductor shortage.

The company's dispatches last month stood at 33,087 units as against 50,313 in September 2020.

Mumbai-based Mahindra & Mahindra saw its domestic passenger vehicle sales drop 12 per cent to 13,134 units last month from 14,857 units in the year-ago period.

"The challenges around the supply of semiconductors continues to pose difficulties for the auto industry globally.

"We have taken several steps to mitigate the effect and are working towards managing the situation as best as possible," M&M automotive division CEO Veejay Nakra noted.

Kia India reported a 22.67 per cent dip in wholesales last month at 14,441 units as compared to 18,676 units in the same month last year.

"As the festive period approaches, we are hopeful to see some improvement in semiconductor procurement.

"For the time being, we are taking all the measures to optimise the production and keep the waiting period of our vehicles in check," Kia India vice president and head of sales and marketing Hardeep Singh Brar said.

Similarly, Honda Cars reported a 33.66 year-on-year dip in domestic sales at 6,765 units for September.

"On the demand side, there is good momentum in the market with improved buying sentiment.

"However, the supply chain hurdles, including the widespread chip shortage, have been a big challenge right now for the industry, which impacted our production volume and dispatches during last month," Honda Cars India senior vice-president and director (marketing and sales) Rajesh Goel said.

The company would continue to align its production through best efforts to tide over this shortage in the coming months, he added.

Tata Motors said its total passenger vehicle sales in the domestic market stood at 25,730 units last month, as against 21,199 in the same month last year.

"Looking ahead, the demand for cars and SUVs is expected to remain strong in the forthcoming festive season; however, the supply situation for electronic components may continue to witness challenging times," Tata Motors president (Passenger Vehicles Business Unit) Shailesh Chandra noted.

Toyota Kirloskar Motor (TKM) reported 14 per cent growth in its domestic wholesales to 9,284 units in September as compared to 8,116 vehicles in September 2020.

"Demand in the personal mobility segment continues as we step into the festive months.

"Customer orders have been on a constant rise and we are witnessing a steady growth, ever since the second wave," TKM associate general manager (sales and strategic marketing) V Wiseline Sigamani said.

Automaker Nissan India said its domestic wholesales rose over three-fold to 2,816 units in September, up from 780 units in the same month of last year.

Similarly, Skoda Auto reported an over two-fold increase in sales at 3,027 units in September, riding on its newly launched SUV Kushaq.

Besides, MG Motor India reported 28 per cent increase in retail sales at 3,241 units in September despite facing production challenges due to the semiconductor supply issues.

The company had retailed 2,537 units in the same month last year.

Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cellphones to various other electronic items.

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

Photograph: Yogendra Kumar/ANI Photo

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