Input shortages hit car sales, bikes slow down

Input shortages hit car sales, bikes slow down
© Provided by The Times of India

NEW DELHI: The car industry’s wholesale deliveries continue to stay weak in November with not much respite on the semiconductor procurement front. While top companies such as Maruti, Hyundai and Honda remained under pressure, the situation in companies like Tata Motors and Mahindra & Mahindra has somewhat stabilised.

On the other hand, two-wheeler players suffered due to weak demand, and companies such as Hero Moto (-43%) and Royal Enfield (-24%) saw their numbers come down sharply.

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With supplies facing a crunch amid heavy bookings and a backlog, car companies continued to report a decline in deliveries to their dealerships.

Maruti Suzuki, the top carmaker in the country, reported a 19% decline in November on total deliveries of 1.1 lakh passenger vehicles against 1.3 lakh in same month last year. The company has said that severe semiconductor shortages are gradually being tackled, though a full recovery is still some time away.

“The shortage of electronic components had a minor impact on the production of vehicles during the month under review. The shortage primarily affected the production of vehicles sold in domestic market. The company took all possible mea sures to minimise the impact,” Maruti said.

Hyundai also continued to face difficulties in inputs and saw a 24% decline in deliveries. The company’s sales in November stood at close to 37,000 units, against about 49,000 units in comparable month last year.

Mahindra & Mahindra reported a 7% growth in November volumes, led by demand for its models such as XUV700 and Thar.

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