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Wholesale auto sales in August drop by 11.7%, chip shortage, high costs hurt industry
- IBJ Bureau
- Sep 10, 2021
As many as 1,08,508 units of passenger cars were sold in August 2021, auto industry body Society of Indian Automobile Manufacturers’ (SIAM) data on wholesale numbers showed on Friday. Passenger car sales declined in August 2021 compared to the figures of August last year when auto companies had sold 1,24,715 units. Shortage of semi-conductors and high commodity prices are the primary causes for decline in sales as compared to those in the same period last year.
Total production of passenger vehicles (PVs), three-wheelers, two-wheelers and quadricycles stood at 19,84,676 units. The domestic auto wholesale for August, however, declined by 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 despatches fell to 19.8 lakh units against 21.6 lakh units sold in August last year.
SIAM Director General Rajesh Menon said that the Indian automobile industry was 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,” mr Menon said.
The vehicle retail numbers for August 2021, 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 the last year’s figures. While retail sales were still down by 14.75 per cent as compared to the numbers of August 2019, a gradual pickup is akin to a sliver of hope.