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Passenger vehicles sales decline 41% YoY in September

Our Bureau New Delhi | Updated on October 14, 2021

Though demand has revived, the shortage of semi-conductor chips is a concern: SIAM

Domestic passenger vehicle (PVs) wholesales (dispatches to the dealers) declined by 41 per cent in September on a year-on-year (YoY) basis to 1,60,070 units as compared with 2,72,027 units, due mainly to the shortage of semiconductor chips, which is a major concern for the industry.

According to the monthly sales data shared by the Society of Indian Automobile Manufacturers (SIAM), the passenger cars segment sales declined by 61 per cent to 64,235 units during the month, as compared with 1,63,981 units in September 2020.

Similarly, the utility vehicles segment sales declined by 9 per cent to 87,720 units in September, as against 96,633 units in the corresponding month last year.

Two-wheeler segment

In the two-wheeler segment, while the dispatches of scooters declined by 7 per cent YoY to 5,17,239 units (against 5,56,205 units) during the month, motorcycles sales declined by more than 22 per cent to 9,48,161 units (against 12,24,117 units in 2020).

This has led to an overall decline of 17 per cent to 15,28,472 units in two-wheeler wholesales in the domestic market, as compared with 18,49,546 units in September last year.

“The Indian automobile industry continues to face new challenges. While on the one hand, we are seeing a revival in vehicle demand, on the other, shortage of semi-conductor chips is a major concern for the industry. Many members have curtailed their production plans. Coupled with the festive season demand, this has led to long waiting time for the customers on popular models of some segments,” Kenichi Ayukawa, President, SIAM said.

High raw material prices also continue to be a challenge, he said, adding that the industry is taking all possible measures to mitigate the impact of such supply chain issues and optimise production.

“As we enter the festive season, it is still very important to be cautious and follow Covid appropriate behaviour. We are hopeful that with the efforts of citizens, government and industry, we’ll be able to avoid a third wave and mitigate demand-supply challenges,” Ayukawa added.

Three-wheeler segment

The only segment that grew was the three-wheeler segment, by 54 per cent YoY to 29,185 units, as compared to 18,976 units in corresponding month last year.

Overall, the grand total of vehicles across categories declined by 20 per cent YoY to 17,17,728 units in September, as compared with 21,40,549 units in September 2020.

Quarterly sales

In the July-September quarter, PV wholesales, however, witnessed a marginal increase of two per cent to 7,41,300 units, as compared with 7,26,232 units in the same period of last fiscal. 

 

Two-wheeler despatches during the quarter stood at 41,13,915 units, down 12 per cent from 46,90,565 units in the second quarter of the financial year 2020-21. 

 

“Owing to the semi-conductor shortage, in September there was a drop in production of about 37 per cent for PVs and 17 per cent for two-wheelers. 

On the sales front, barring the Covid period, the first half of this year’s sales of PVs are still below 2016-17 levels, that of two-wheelers are below 2011-12 levels,” Rajesh Menon, Director General, SIAM said. 

 

He added that sales of commercial vehicles are below 2010-11 levels, and that of three-wheelers is still below 2000-01 levels. 

 

 

Published on October 14, 2021

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