The shortage of semiconductors has once again hit two of the country’s three largest carmakers, which have dominated over 70 per cent of the car market in the country, as October sales slumped due to the shortage.
The total domestic passenger vehicle sales by nine manufacturers during the month of October declined by 21 per cent to 238,679 vehicles as against 302,170 units a year ago. The decline comes at a time when orders for over 350,000 vehicles are pending with the car industry in the country.
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Country’s largest car maker Maruti Suzuki In October, wholesale sales of passenger vehicles declined by 33 per cent to 108,991 vehicles as the semiconductors were exhausted. The Delhi-based company and its contract manufacturing company had cut production by 40 per cent in October due to chip shortage.
India’s second most common car on the road, Hyundai reported a 34 per cent drop in October sales to 37,021 vehicles. Hyundai Motor India was not affected by the chip shortage for a long time but October figures show that their production eventually declined.
Despite chip shortage, Maruti Suzuki sold 1.38 lakh vehicles
Third company in terms of volume Tata Motors On a year-on-year basis, the company sold 33925 units in October, up 44 per cent over the year-ago period. These included 1,586 electric vehicles.
SUV Specialist Mahindra & Mahindra The company registered a growth of 8 per cent in sales of 20,130 vehicles in October as compared to the previous year on a year-on-year basis. Although the company was one of the first to be affected by the semiconductor shortage, the company has adopted a number of measures over the past few months to mitigate the risk of its shortage.
Vijay Nakra, Automotive Division, M&M said, “Our product portfolio continues to have strong demand for vehicles. We have received an unprecedented response for the XUV700 and have already started delivering petrol vehicles to the customers. We are working fast on the issue of semi-conductor-related parts supply as we focus on handling the situation in a short span of time.
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Korean automotive brand Kia sold 16,331 vehicles on a year-on-year basis during October, a decline of 22 percent over the previous year. On the other hand, sales of Toyota Kirloskar vehicles increased by 0.54 percent to 12,440 vehicles. MG Motor sales declined by 24 percent to 2,863 vehicles in the month of October.
MG Motor said that the chip shortage globally led to a reduction in production resulting in lower sales. The challenge of ensuring on-time deliveries is likely to continue till November and December and we expect the situation to improve in the first quarter of next year.
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