Component makers apply brake to record auto sales

The Indian auto industry's record breaking sales in January could have been much better had it not been for supply constraints of key components, mainly that of tyres.

According to Society of Indian Automobile Manufacturers (SIAM), the auto industry sold 11,14,157 vehicles last month, up 44.94 per cent, over 7,68,698 units in the year-ago period.

"There is an effect to the growth of the industry due to supply (constraints) of components," SIAM Director General Dilip Chenoy told reporters here.

"Tyre shortage is an issue. Passenger car production was held up because of unavailability of radial tyres," he added without specifying details.

Chenoy, however, said export of components had dropped and that helped the industry to cater to the domestic demand up to certain extent.

Acknowledging the problems, a Tata Motors spokesperson said, "Yes, there was a supply constrain from tyres in January ...The growth could have been more."

In January, domestic passenger car segment also posted highest ever monthly sales at 1,45,905 units, against 1,10,300 units, up 32.28 per cent, in the same month last year.

When contacted, Automotive Component Manufacturers Association of India (ACMA) Executive Director Vishnu Mathur said: "Nobody anticipated such huge growth as till six months ago sales were dwindling. This is a short term demand-supply issue and very soon the demand fluctuations will settle down."