Auto sales skid on supply chain issues; Tata Motors, M&M buck trend

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Major automakers Maruti Suzuki and Hyundai saw double-digit sales decline in October due to the global semiconductor shortage affecting production.

Kia India, Honda Cars and MG Motor also saw lower shipments last month compared to October 2020.

However, companies like Tata Motors, Mahindra, Nissan and Skoda managed to post positive numbers last month despite supply chain challenges.

The country’s largest automaker, Maruti Suzuki India (MSI), said its domestic sales fell 32% to 1,17,013 units last month from 1,7,2,862 units in October 2020.

“As the shortage of electronic components continued to affect vehicle production during the month, the company took all possible measures to minimize the impact. automotive major said.

Sales of mini-cars, including Alto and S-Presso, fell 23% to 21,831 units from 28,462 in the same month last year.

Likewise, sales of the compact segment, comprising models such as Swift, Celerio, Ignis, Baleno and Dzire, fell 49% to 48,690 units from 95,067 cars in October last year.

Sales of commercial vehicles, including Vitara Brezza, S-Cross and Ertiga, however, rose 7% to 27,081 units from 25,396 previously.

Rival Hyundai Motor India reported a 35% drop in domestic sales last month to 37,021 units. It had shipped 56,605 units to dealers by October 2020.

The global semiconductor supply constraint continues to be a challenge, causing production to decline across the industry, the company noted.

Kia India saw a 22% year-on-year drop in wholesale sales to 16,331 units last month, while Honda Cars saw domestic shipments drop 25% to 8,108 units.

“Although the situation remains dynamic due to the persistent challenges on the supply side, the company is making every effort to maintain a constant pace of delivery and respond effectively to market demand”, Honda Cars India Senior Vice President and Director (Marketing and Sales) said Rajesh Goel.

Likewise, MG Motor India reported a 24% drop in retail sales to 2,863 units in October amid production problems due to the semiconductor shortage.

Local automotive major Mahindra & Mahindra said its domestic passenger vehicle sales were 20,130 units, up 8% from 18,622 units the previous year.

“Demand for vehicles across our product portfolio remains strong. We have received an unprecedented response for the XUV700 and in line with our commitment we have started delivering the gasoline variant to customers,” said Veejay Nakra, CEO of Mahindra & Mahindra.

The supply chain issues for semiconductor-related parts remain dynamic as the company focuses on dealing with the short-term situation, he added.

Likewise, Tata Motors reported a 44% increase in domestic passenger vehicle shipments to 33,925 units in October, from 23,617 units in the same month last year.

Nissan India said its domestic wholesale sales tripled to 3,913 units in October, while Skoda reported an increase of more than double its sales in India to 3,065 units in October 2021, thanks to its new Kushaq midsize SUV. .

In the two-wheeler segment, TVS Motor Company recorded sales of 2,58,777 units in the domestic market last month, up from 3,01,380 units in October 2020.

“With the easing of restrictions related to the pandemic and the holiday season approaching, we expect retail sales to improve significantly in the coming months,” he said. .

Similarly, Suzuki Motorcycle India said its domestic sales fell to 56,785 units in October, from 67,225 earlier.

Bajaj Auto reported a 22% drop in total domestic sales to 2,565,665 units last month from 2,81,160 units in October 2020.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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