Chip Crisis Drags India's Festive Car Sales To Lowest In Seven Years, SIAM Says

Factory-gate sales of cars and utility vehicles fell after a brief rebound, making it the worst festive season in seven years, as the global chip shortage continues.

Domestic wholesales of passenger vehicles fell 4.7% month-on-month to 2.15 lakh units in November, according to data released by the Society of Indian Automobile Manufacturers on Friday.

SIAM's November Volumes (MoM)

• Car sales fell 2.8% to 1,00,906 units.

• Wholesales of utility vehicles declined 6.3% to 1,05,091 units.

• Total two-wheeler sales tumbled 31.8% to 10,50,616 units.

• Scooter sales dropped 34.3% to 3,06,899 units.

• Motorcycle sales plunged 31.2% to 6,99,949 units.

The Indian auto industry, like global peers, has been hit by a severe crunch of chips, the brains of electronic components inside cars, even as it was emerging from the second Covid-wave disruption. The semiconductor crisis began last December and worsened amid mounting infections in the key producer Malaysia.

"The industry continues to face headwinds due to the global chip shortage," Rajesh Menon, SIAM director-general, said in a statement. While the industry hoped to make up for the lost ground in the festive season, the sales were the lowest in seven years for passenger vehicles, and the worst in 11 years for two-wheelers.

The two-wheeler segment also grapples with poor demand sentiment as higher input costs and rising fuel prices hurt affordability for buyers.