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Reeling under the pressure of semiconductor shortage, leading car makers, including Maruti Suzuki India (MSIL), Hyundai Motor India (HMIL) and Kia India, have reported decline in domestic sales by double-digits in October.
Overall, except commercial vehicles, even two-wheeler sales declined during the month on the yearly basis.
In the passenger vehicle segment, India’s largest passenger car manufacturer MSIL reported domestic wholesale (dispatches to dealers) of 1,08,991 units in October, down 33 per cent year-on-year (y--o-y) as compared to 1,63,656 units in the corresponding month last year.
Similarly, HMIL reported a decline of 35 per cent at 37,021 units (56,605 units).
Production hit
“While the shortage of electronic components continued to affect the production of vehicles during the month, the company took all possible measures to minimise the impact. Accordingly, the company sold more vehicles than the sales volume expected at the start of the month,” MSIL said in a statement.
‘Seltos’ maker Kia India recorded a 22 per cent dip in sales on yearly basis to 16,331 units compared with 21,021 units in October 2020.
Commenting on the numbers, Tae-Jin Park, Managing Director and Chief Executive Officer, Kia India, said, “As we foresee the issue (semiconductor shortage) to continue for the next few months, we assure our customers to keep optimising our production to the maximum level and ensure delivery at the earliest. We are keeping a close eye on the situation and are ready to take the necessary steps as and when required.”
Honda Cars India also saw a decline of 25 per cent in sales during the month to 8,108 units (10,836 units).
Positive growth
However, homegrown companies Tata Motors and Mahindra & Mahindra reported positive growth during the month, backed by new and refreshed launches over the last few months.
Tata Motors recorded sales of 33,925 units (23,617 units), an increase of 44 per cent. Though in single-digit (8 per cent) M&M’s sales grew to 23,130 units (18,622 units).
In the two-wheeler segment, market leader Hero MotoCorp reported a decline of 34 per cent YoY at 5,27,779 units in October compared with 8,06,848 units in October last year.
However, the company said it was positive as demand in the festival season has been building up, especially with Dhanteras and Diwali.
Others including Bajaj Auto, TVS Motor and Royal Enfield reported double-digit decline during the month.
In the commercial vehicle segment, companies including Ashok Leyland, Volvo Eicher and Tata Motors recorded positive sales with double-digit growth during the month.
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