The domestic auto sector may be headed for a lacklustre festive season despite strong demand as vehicle production has been severely hit by the shortage of electronic components.
Major players such as Maruti, Hyundai and Mahindra & Mahindra, saw double-digit decline in vehicle dispatches to their dealers in September, ahead of the festive season that accounts for nearly 40% of the industry’s annual sales.
Country’s largest car maker Maruti Suzuki said it sold 63,111 passenger vehicles (PVs) in the domestic market last month, lower by 57% year-on-year. Hyundai Motor India wholesales was down 34% to 33,087 units during the month due to semiconductor supply constraints.
In the two-wheeler segment, TVS Motors sold 2,44,084 units in the domestic market last month, as against 2,41,762 units in September 2020. “With pandemic restrictions easing and the festive season soon approaching, we expect the retails to improve significantly in the coming months,” the company said.
Royal Enfield saw sales skid by 52% to 27,233 units as the ongoing global shortage of semiconductor chips and the recent lockdown in certain source markets had impacted volumes for September. “The situation improved towards the end of September, and availability of parts is expected to start scaling up from Q3 FY22,” the company said.
