Despite strong demand, the domestic auto sector may miss the festive season as vehicle production has been badly hit by shortage of electronic components.
Major players such as Maruti, Hyundai and Mahindra & Mahindra saw a double-digit decline in vehicle dispatches to their dealers in September, which accounts for nearly 40% of the industry’s annual sales, in September ahead of the festive season.
The country’s largest carmaker Maruti Suzuki said it sold 63,111 passenger vehicles (PVs) in the domestic market last month, down 57% year-on-year. Hyundai Motor India wholesales declined 34% to 33,087 units during the month due to semiconductor supply constraints.
In the two-wheeler segment, TVS Motors sold 2,44,084 units in the domestic market last month as against 2,41,762 units sold in September 2020. in the coming months,” the company said.
Royal Enfield sales declined 52% to 27,233 units as global shortage of semiconductor chips and recent lockdown in some source markets impacted volumes for September. “The situation improved at the end of September, and parts availability is expected to begin from Q3 FY22,” the company said.
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