Auto Industries In Difficulty Due To Lack Of Semiconductors As Festivals Will Affect Sales.

The decline in wholesale automobile sales in India is mainly due to the shortage of semiconductors affecting the manufacturing process across the industry. The SIAM report showed an 11 percent year-on-year decline in August. As a result, total wholesale sales, excluding commercial vehicles, fell to 15,86,873 units last month from 17,90,115 units in August 2020.

According to a recent Society of Indian Automobile Manufacturers (SIAM) report, shipments of two-wheelers from OEMs to dealers declined last month while passenger vehicle and three-wheeler wholesale increased in August 2020.

Dispatch of two-wheelers from OEMs to dealerships fell 15 percent to 13,31,436 units in August from 15,59,665 units in the previous period. Motorcycle sales last month were 8,25,849 units as against 10,32,476 units in August 2020, down 20 percent. 

In addition, scooter dispatch fell 1 percent to 4,51,967 units last month from 4,56,848 units a year ago.

Total passenger vehicle sales, including shipping cars, utility vehicles, and vans from OEMs to dealerships, rose 7 percent to 2,32,224 units in August from 2,15,916 units in the same month last year. Three-wheeler wholesale rose 60 percent to 23,210 units last month from 14,534 units a year ago. Commenting on the August sales, SIAM Director General Rajesh Mann said the Indian automobile industry is under pressure due to supply chain challenges.

However, the auto industry accounts from about 10 percent from overall semiconductor demand. The rest comes from electronic devices and gadgets, such as mobile phones and laptops, among others. In addition to the shortage of chips, high commodity prices remained challenging, as they affect the auto industry's cost structure.

He added, "Against such strong movements, SIAM members are working hard to meet customer demands and expectations. However, sales from April to August 2021 show that the passenger vehicle segment is still below the 2016-17 level, the two-wheeler segment is lower than the 2011-12 level, and the three-wheeler segment is far behind.

More impact on the production of new technological vehicles

"The global shortage of semiconductors continues and is now having a severe impact on production across the auto industry," he said. And falling on what is coming with driver-assist, navigation, and hybrid-electric systems.

Difficulty in delivering due to festivals

With the onset of the festival, many booking orders have started arriving, but given the shortage of semiconductors and chips, companies have not been able to deliver on time. As a result, customers will have longer waiting periods. Many companies' top new models now have a waiting period of a fortnight to a month.