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Indian automobile sector clocks sluggish sales in August

11:49, 1 September 2021

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Robotic arms on a car production line
Sluggish sales hamper India's automobile sector – Photo: Shutterstock

India’s largest passenger car manufacturers reported sluggish sales in August as gains from a recovery in demand were offset by the global chip shortage.

The heavy commercial vehicle sector reported a slight surge in sales with the easing of the COVID-19 lockdown restrictions, imposed since April, helping to spur demand.

India’s largest passenger car maker Maruti Suzuki sold 130,699 units in August, down 19.5% from the previous month due to the chip shortage.

“Sales volume of the company in August 2021 was affected due to electronic components shortage. The company took all possible measures to limit the adverse impact. While the sales volume in August 2021 was affected due to electronic components shortage, the sales volume in August 2020 was impacted due to COVID-19 related disruptions,” Maruti Suzuki said in an exchange filing.

Tata Motors, which makes passenger and commercial vehicles, said its total sales in August rose 7% month-on-month to 57,995 units. The company’s commercial vehicle sales rose 25% to 29,781 units while passenger vehicle sales fell 7% to 28,018 units.

“Semiconductor shortage continues to impact the auto industry globally. The recent lockdowns in East Asia have worsened the supply situation and hence Tata Motors is forced to moderate production and offtake volumes in the coming months.

“The situation is fluid and we will continue to work to mitigate the impact of this and aim to meet our customer orders through an agile, multi-pronged approach including close engagement with our extended supply chain partners, procuring chipsets from the open market, using alternate chips and managing our model and trim mix,” Tata Motors said in a statement.

India’s largest two-wheeler manufacturer, Bajaj Auto, said its total sales rose marginally to 373,270 units from 369,116 units in July.

Heavy commercial vehicle maker Ashok Leyland reported 8% month-on-month growth in August to 9,360 units.

Tractor and utility vehicle maker Mahindra & Mahindra clocked a near 29% fall in total sales to 30,585 units in August, the company said in an exchange filing.

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