Carmakers in India on Friday reported sharp growth in annual sales for FY22 but warned of future risks from global supply chain disruptions.
see photosCars are seen parked at Maruti Suzuki’s plant in Manesar in the northern state of Haryana
Carmakers in India on Friday reported sharp growth in annual sales for FY22 but warned of future risks from global supply chain disruptions.
India’s largest carmaker Maruti Suzuki said sales grew 13% to 1.65 million units in the fiscal year ended March 31, the first rise in two years. But the company warned that “the supply situation of electronic components remains unpredictable”.
In a statement, Maruti said it may have “some impact” on production volumes in the current financial year. Maruti, which sells one out of every two cars in India, is owned by Japan’s Suzuki Motor Corp.
Automakers globally have been forced to cut production sharply over the past year as supply chain disruptions and rising demand for consumer electronics have led to a severe shortage of semiconductors. Because of this, car buyers have to wait a long time.
Now, Russia’s invasion of Ukraine is expected to worsen the problem, Indian rating agency ICRA said as both the countries supply raw materials used to make semiconductors.
“The impact of the crisis in the form of higher fuel and commodity prices also poses risks to (automobiles) demand prospects, if it turns into a prolonged war,” the ICRA said.
Tata Motors, which is also India’s largest electric car maker, recorded its highest ever annual sales of passenger vehicles, up 67 per cent from a year ago to 370,372 units. Its electric car sales nearly quadrupled to 19,000, the company said in a statement, despite “two waves of Covid, the semi-conductor crisis and a steep rise in commodity prices”.
“Going forward, the semi-conductor situation remains uncertain. We will continue to closely monitor the evolving situation,” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
(Reporting by Aditi Shah; Editing by Francis Kerry)
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