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Semiconductor shortage has made an impact on the automobile sales numbers of companies such as Maruti Suzuki India (MSIL), Hyundai Motor India (HMIL), Toyota Kirloskar Motor (TKM) and Nissan India, for the month of August.
The companies said semiconductor shortage posed hurdles in meeting the demand, especially with the starting of the festival season. However, for two-wheelers and commercial vehicles, the wholesale numbers were better on a month-on-month basis.
In the passenger vehicles (PV) segment, the country's largest passenger vehicles maker MSIL sold 1,03,187 units in the domestic market during the month, a decline of 24 per cent compared with 1,33,732 units in July. ‘XUV500’ maker Mahindra & Mahindra (M&M) reported a decline of 24 per cent to 15,973 units (21,046 units). In the commercial vehicle segment too, M&M reported decline in sales.
The second largest PV manufacturer HMIL reported a decline of more than two per cent at 46,866 units in August compared with 48,042 units in July.
Tata Motors saw a decline of more than seven per cent to 28,018 units (30,185 units).
Similarly, Japanese subsidiaries such as Toyota Kirloskar Motor and Nissan India reported a decline in sales for the month.
Festival season
“With the start of the festival season, customer sentiments are positive with increasing inflow of bookings. The challenge is on the supply side with shortages and increased lead time of semi-conductors supply impacting the availability of vehicles. We foresee this challenge to continue during the coming months,” Rakesh Srivastava, Managing Director, Nissan Motor India, said.
Kia number grows
However, Kia India recorded growth in wholesales to 16,750 units in August compared with 15,016 units in July. “August was a month of multiple milestones for us and has given healthy sales numbers. Our products have been faring very well. To cater to the pent up and upcoming demand for our vehicles, we are taking appropriate measures to enhance the production output,” Tae-Jin Park, Executive Director and Chief Sales and Business Strategy Officer, Kia India, said.
MG Motor India has grown its retail sales marginally to 4,315 units in August compared to 4,255 units in July.
With the success of Kushaq, Skoda Auto India recorded higher sales at 3,829 units during the month against 3,080 units in July.
Supply challenges
According to analysts, the passenger vehicle (PV) volumes should fall sequentially due to supply challenges but may improve in comparison to 2019 levels. The recent supply issues are due to higher Covid-19 cases in Asian countries that are part of the semiconductor supply chain.
In the two-wheeler segment, market leader Hero MotoCorp recorded a marginal growth to 4,31,137 units against 4,29,208 units in July, while its rival Honda Motorcycle & Scooter India reported a double-digit growth (18 per cent) to 4,01,469 units compared with 3,40,133 units in July. Bajaj Auto reported sales of 1,57,971 units compared with 1,56,232 units in July.
In the tractor segment, both leading companies M&M and Escorts recorded decline in sales on a monthly basis.
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