Passenger vehicle dispatches from factories to sellers declined 13 per cent to the bottom stage in 5 years in December final 12 months because the trade continued to face manufacturing points attributable to semiconductor shortage, auto trade physique SIAM mentioned on Friday.
Passenger vehicle dispatches final month stood at 2,19,421 models in comparison with 2,52,998 models in December 2020.
While acknowledging that the chip shortage scenario just isn’t anticipated to dramatically change in the brief time period, the trade physique expressed hope that issues will enhance quickly.
As per the newest knowledge from the Society of Indian Automobile Manufacturers (SIAM), two-wheeler wholesales additionally fell 11 per cent to 10,06,062 models in December 2021. In the year-ago interval, the identical stood at 11,27,917 models.
Motorcycle sales declined 2 per cent to 7,26,587 models in December final 12 months in comparison with 7,44,237 models in the identical interval a 12 months in the past.
Scooter sales had been additionally down 24 per cent to 246,080 models in December 2021. During the identical time final 12 months, it was at 323,757 models.
In the December quarter of the present fiscal, passenger vehicle sales dropped 15 per cent to 761,124 models from 897,908 models in the year-ago interval.
During the identical time, two-wheeler sales fell 25 per cent to 35,98,299 models in comparison with 47,82,110 models in the identical interval a 12 months earlier.
However, industrial vehicle sales noticed a marginal improve to 194,712 models in the quarter below evaluate as towards 1,93,034 models in December quarter of 2020.
During the 2021 December quarter, vehicle sales throughout classes declined 22 per cent on a year-on-year foundation to 46,36,549 models.
The identical was at 59,46,283 models in the year-ago interval.
“The sales numbers in the October-December quarter weren’t as per expectations for many of the trade gamers.
“In truth, the competition season sales had been very weak as in comparison with the previous.
“Soon after the second wave (of COVID) there was a rise in demand. But trade confronted challenges in fulfilling this demand attributable to provide facet points, primarily shortage of semiconductors,” SIAM president Kenichi Ayukawa instructed reporters in a digital press convention.
Besides, the entry stage automotive phase suffered a dip as costs went up considerably attributable to a rise in enter prices and upcoming strict laws associated to security and emissions, he famous.
“If we have a look at the third quarter figures, passenger vehicle sales are the bottom in the final 5 years whereas two wheeler sales are the bottom in the final 9 years.
“Similarly, industrial vehicle sales are the bottom in the final 5 years.
“Three-wheeler phase is the worst impacted, with sales lowest in the final 13 years,” Ayukawa mentioned.
He added that for the sustainable progress of the trade, there’s a want for each demand enchancment and easing out of provide chain challenges.
“Members are working onerous to make sure security of individuals in the worth chain to maximise manufacturing to fulfill the demand and minimise affect of provide facet challenges.
“We are hoping for issues to enhance quickly,” Ayukawa acknowledged.
According to him, the chip shortage scenario is regularly enhancing however just isn’t anticipated to vary dramatically in the brief time period.
“If provide chain challenges and COVID stay below management, we are able to count on some progress in volumes in the approaching months,” Ayukawa acknowledged.
Further, he mentioned that 2021 has been the second consecutive 12 months of coping with the challenges and disruption brought on by COVID.
“The virus remains to be right here and now it’s spreading a lot quicker.
“The auto trade members proceed to make sure all COVID security protocols in the provision chain proper from the suppliers and factories to OEM manufacturing models and officers to sellers and repair workshops to the client,” Ayukawa mentioned.
Noting that the trade has proven sturdy resilience in these testing occasions, he mentioned that based mostly on the federal government pointers, the trade will do its finest to struggle the virus and hold the economic system shifting.
“… the trade will proceed to face with the federal government to help in no matter method attainable,” he added.
SIAM director common Rajesh Menon famous that shortage of semiconductors has led to manufacturing cuts over the previous few months.
Other challenges embrace shortage of containers and speedy improve in COVID infections, he added.
Commenting on December 2021 wholesales, Menon mentioned, demand of the passenger vehicle phase was largely affected attributable to provide constraints whereas the two-wheeler phase was majorly impacted attributable to subdued demand.
Sales of buses and three-wheelers proceed to be a priority, he famous.
“Barring 2020, the sales of economic automobiles in the third quarter has been lowest in the final 5 years and sales of three wheelers, barring 2020, has been the bottom in the final 13 years,” Menon mentioned.
On the trade’s wishlist for the upcoming Union Budget, Menon mentioned, “We have requested that the cutoff date for a brand new manufacturing firm to start out its manufacturing be prolonged from March 2023 to March 2025.
“It will enable such companies to avail tax incentives as COVID led points have delayed the graduation of operation of manufacturing.”