Passenger vehicle wholesales down by 27% in October amid chip shortage

Passenger vehicle wholesales in India declined by 27 per cent year-on year in October with semiconductor shortage hitting production of automobile manufacturers, auto industry body SIAM said on Friday.

Passenger vehicle sales last month stood at 2,26,353 units, as compared to 3,10,694 units in the year-ago period.

As per the latest data by the Society of Indian Automobile Manufacturers (SIAM), two-wheeler dispatches to dealers also witnessed a 25 per cent decline at 15,41,621 units, compared to 20,53,814 units in October 2020.

Motorcycle dispatches were also down 26 per cent last month to 10,17,874 units, as against 13,82,749 units in the year-ago period.

Scooter sales fell 21 per cent to 4,67,161 units, from 5,90,507 units in the year-ago month, SIAM said.

Vehicle sales across passenger vehicles, three-wheelers, two-wheelers and quadricycles categories last month, declined by 25 per cent to 17,99,750 units, from 23,91,192 units in October 2020.

“Manufacturers were banking on the festive season to recover from the severe drop in sales they have faced in the early part of the financial year 2021-22. However, shortage of semiconductors and steep hike in raw material cost have been a major spoilsport for the industry,” SIAM Director General Rajesh Menon said.

Last month, the total production of passenger vehicles, three-wheelers, two-wheelers and quadricycles stood at 22,14,745 units, down 22 per cent from 28,30,844 units in October 2020.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor