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SUV Sales Fall On Chip Crunch In December: SIAM

Domestic wholesales of passenger vehicles rose 1.75% over the previous month to 2.19 lakh units in December.

<div class="paragraphs"><p>Workers clean the hood of a body frame of a sedan. (Photographer: Yen Duong/Bloomberg)</p></div>
Workers clean the hood of a body frame of a sedan. (Photographer: Yen Duong/Bloomberg)

Automakers shipped more passenger vehicles from their factories in December even as shipments of utility vehicles, India's hottest-selling segment, dropped amid a shortage of semiconductors.

Domestic wholesales of passenger vehicles rose 1.75% over the previous month to 2.19 lakh units in December, according to data released by the Society of Indian Automobile Manufacturers.

Two-wheeler sales, however, fell as companies work towards paring inventories as demand sentiment remain muted.

SIAM's December 2021 Volumes (MoM)

  • Car sales rose 12% to 1,12,873 units.

  • Wholesales of utility vehicles, dominated by compact SUVs, fell 7.5% to 97,137units.

  • Total two-wheeler sales tumbled 4.24% to 10,06,062 units.

  • Scooter sales dropped 20% to 2,46,080 units.

  • Motorcycle sales rose 3.83% to 7,26,587 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 first and second Covid-wave disruption. The semiconductor crisis began in December 2020 and worsened amid mounting infections in key producer Malaysia.