Auto Sales Rise In July Amid Chip Shortage, Input Cost Pressures
Domestic wholesales of passenger vehicles rose 14.16% month-on-month to 2.64 lakh units in July.
Indian automakers shipped more cars and utility vehicles than the preceding month even as supply-side constraints and input cost woes deepen.
Domestic wholesales of passenger vehicles rose 14.16% month-on-month to 2.64 lakh units in July, according to data released by the Society of Indian Automobile Manufacturers.
SIAM numbers for July 2021 (MoM)
Car sales rose 7.16% to 1.30 lakh units.
Wholesales of utility vehicles jumped 23.12% to 1.24 lakh units.
Scooter sales surged 51.5% to 3.66 lakh units.
Motorcycle sales increased 7.7% to 8.37 lakh units.
Total two-wheeler sales rose 18.76% to 12.53 lakh units.
Three-wheeler sales increased 90.35% to 17,888 units.
The resurgence in Covid-19 infections had stalled the industry’s nascent recovery from the disruptions caused a year earlier because of the nationwide lockdown to prevent the pandemic’s first wave. Demand tumbled in April and May as local lockdowns shut dealerships in cities. The country’s hinterland, too, wasn’t spared.
Sales picked up as the curbs were gradually eased from June.
But, Rajesh Menon, director-general at SIAM said, the Indian auto industry continues to face headwinds in the form of a global semiconductor shortage and a steep rise in commodity prices. “The industry is trying to maximise production and sales amid a challenging and uncertain environment,” he said in a statement. “[The industry is ] keeping a close eye on the onset of a third wave in India and across the world.”
BloombergQuint has also reported that the automakers are bracing for the worst of the chip shortage in the ongoing quarter.