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The domestic wholesales (dispatches to dealers) of passenger car sales declined by 33 per cent year-on-year (y-o-y) to 1,00,906 units in November, as against 1,49,949 units in the same month in 2020.
However, the utility vehicle (UV) sales grew marginally (by more than 1 per cent) during the month to 1,05,091 units as compared to 1,03,525 units in November 2020. The growing demand for these vehicles reflect the market trend as well.
Double-digit decline
However, the segment could not make a headway towards betterment of the market, leading to a decline in total PV sales by 19 per cent y-o-y to 2,64,898 units in Novemberagainst 2,15,626 units in the same month a year ago.
The latest report by the Society of Indian Automobile Manufacturers (SIAM) shows total two-wheeler (2w) sales, too, declined by 34 per cent y-o-y to 10,50,616 units last month, as against 16,00,379 units in November 2020. Scooter (3,06,899 units vs 5,02,561) and motorcycle sales (6,99,949 units vs 10,26,705) also recorded a 39 and 32 per cent y-o-y decline, respectively.
The three-wheeler (3w) sales declined by seven per cent y-o-y to 22,471 units as against 24,071 units in November 2020, the data said. Overall, the grand total of all categories declined by 32 per cent y-o-y to 12,88,759 units in November as compared with 18,89,348 units the same month last year.
Global headwinds
“Industry continues to face headwinds due to global semi-conductor shortage. In the festive season, industry was hoping to make up for the lost ground, but November sales were lowest in seven years for passenger vehicles, lowest in 11 years for two-wheelers, and lowest in 19 years for three-wheelers," said Rajesh Menon, Director General, SIAM.
"Amid the rising threat of Omicron, industry is pro-actively ensuring employee safety and monitoring any supply-chain hiccup," he added.
According to analysts, the impact of disruptions in global supply of semiconductors is clearly visible now as November saw a decline to 2.15 lakh units. Despite the demand shooting up during the festive season, PV sales have slipped.
“As the semiconductor shortage continues to create an imbalance with reduced productions and stretched delivery period, the consumer sentiment is expected to dampen further. The chances of Omicron-related restrictions are also likely to keep manufacturers and consumers on a cautious side. The domestic sales are expected to be uplifted with the stabilisation of the semiconductor supply chain and reduction in oil/commodity prices,” said Saket Mehra, partner and auto-sector leader at Grant Thornton Bharat.
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