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Auto wholesales dip 11% in Aug due to continued chip shortage, high commodity prices

Auto wholesales dip 11% in Aug due to continued chip shortage, high commodity prices

Total factory dispatches fall to 19.8 lakh units vs 21.6 lakh units sold in August last year. SIAM Director Rajesh Menon says the automobile industry is reeling under pressure due to supply chain challenges

The total production of PVs, three-wheelers, two-wheelers and quadricycle stood at 19,84,676 units. Photo: Reuters The total production of PVs, three-wheelers, two-wheelers and quadricycle stood at 19,84,676 units. Photo: Reuters

As many as 1,08,508 units of passenger cars were sold in August 2021, auto industry body SIAM (Society of Indian Automobile Manufacturers) data on vehicle wholesale shows. PV sales declined in August 2021, as compared to August last year when auto firms sold 1,24,715 units. The semi-conductor shortage and high commodity prices are the primary causes for the decline in sales as compared to the same period last year.

The total production of PVs, three-wheelers, two-wheelers and quadricycle stood at 19,84,676 units. The domestic auto wholesale for August, however, declined 11.7 per cent to 15.8 lakh units as compared to 17.9 lakh units sold in the domestic market in August last year. The total factory dispatches fell to 19.8 lakh units vs 21.6 lakh units sold in August last year.

Also read: Vehicle sales up 14.48% on-year; PV sales increase 38.71% in Aug: FADA

Rajesh Menon, Director General, SIAM said the Indian Automobile Industry is reeling under pressure due to supply chain challenges. "The global semi-conductor shortage continues and now it is having an acute impact on output across the auto industry. In addition, high commodity  prices are increasing the cost of production."

Announcing the automobile industry sales figures, SIAM tweeted a total of 2,32,224 PV units were sold in August’21. Auto companies in India sold 10,853 vans, 23,210 units of three-wheelers and 1,12,863 utility vehicles.

As per the SIAM data, 13,31,436 units of two-wheelers were sold and 51,204 PV units were exported in August’21. The companies exported 36,915 three-wheelers and 3,72,293 two-wheelers.

The vehicle retail numbers for August, released by the Federation of Automobile Dealers Associations (FADA), also brought mixed tidings for all the categories. Total vehicle sales for August rose 14.48 per cent over last year. While retails were still down by -14.75 per cent as compared to August 2019, the gradual pickup is akin to a sliver of hope.

Also read: Passenger vehicle sales soar 63% YoY in July: FADA