You are here: Home » Companies » News
Business Standard

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

Maruti Suzuki and Hyundai witnessed a double-digit drop in sales in October

Topics
Auto sales | Maruti Suzuki | Hyundai

Press Trust of India  |  New Delhi 

Carmakers

Leading carmakers and witnessed a double-digit drop in sales in October on account of the global semiconductor shortage impacting production.

Kia India, Honda Cars and MG Motor also saw a fall in dispatches last month as compared with October 2020.

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

The country's largest carmaker India (MSI) said its domestic sales slipped 32 per cent to 1,17,013 units last month as against 1,72,862 units in October 2020.

"While the shortage of electronic components continued to affect the production of vehicles during the month, the company took all possible measures to minimise the impact. Accordingly, the company sold more vehicles than the sales volume expected at the start of the month," the auto major stated.

Sales of mini cars, comprising Alto and S-Presso, fell 23 per cent to 21,831 units as compared to 28,462 in the same month last year.

Similarly, sales of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, slumped 49 per cent to 48,690 units as against 95,067 cars in October last year.

Utility vehicle sales, including Vitara Brezza, S-Cross and Ertiga, however rose 7 per cent to 27,081 units as compared to 25,396 earlier.

Rival Motor India reported a 35 per cent decline in domestic sales last month at 37,021 units. It had dispatched 56,605 units to dealers in October 2020.

The global semiconductor supply constraint continues to be a challenge, resulting in lower production across the industry, the company noted.

Kia India witnessed a 22 per cent year-on-year decline in wholesales at 16,331 units last month, while Honda Cars saw its domestic dispatches go down by 25 per cent to 8,108 units.

"While the situation still remains dynamic due to the ongoing supply side challenges, the company is making all possible efforts to maintain a steady delivery pace and catering to the market demand effectively," Honda Cars India Senior Vice-President and Director (Marketing and Sales) Rajesh Goel said.

Similarly, MG Motor India reported a 24 per cent dip in retail sales at 2,863 units in October amid production challenges due to the semiconductor shortage.

Homegrown auto major Mahindra & Mahindra said its passenger vehicle sales in the domestic market stood at 20,130 units, up 8 per cent from 18,622 units in the year-ago period.

"Demand for vehicles across our product portfolio remains robust. We have received an unprecedented response for XUV700 and as per our commitment, we have commenced deliveries of the petrol variant to customers," Mahindra & Mahindra CEO Automotive Division, Veejay Nakra said.

The supply chain issues around semiconductor related parts continues to be dynamic as the company focuses on managing the situation in the short term, he added.

Similarly, Tata Motors reported a 44 per cent jump in passenger vehicle dispatches in the domestic market at 33,925 units in October as compared to 23,617 units in the same month last year.

Nissan India said its domestic wholesales rose over three-fold to 3,913 units in October, while Skoda reported an over two-fold jump in sales in India at 3,065 units in October 2021, riding on the back of its newly launched mid-size SUV Kushaq.

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

"With pandemic restrictions easing and the festive season soon approaching, we expect the retails to improve significantly in the coming months," it stated.

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

Bajaj Auto reported a 22 per cent drop in total domestic sales at 2,18,565 units last month as against 2,81,160 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

First Published: Mon, November 01 2021. 18:31 IST
RECOMMENDED FOR YOU
.