Automobile Dispatches Slips 23% In February Due To Supply-Side Challenges, Says Siam
Siam said the slump in dispatches caused primarily due to various supply-side challenges, including chip shortage, and rise in vehicle prices due to the implementation of new regulations
New Delhi: Society of Indian Automobile Manufacturers (Siam) on Friday said that automobile dispatches from factories to dealerships across the country declined 23 per cent in February, according to a news report by the PTI.
According to the industry body the slump in dispatches caused primarily due to various supply-side challenges, including semiconductor shortage, and rise in vehicle prices due to the implementation of new regulations which continued to impact demand scenario.
Siam Director-General Rajesh Menon said, “Continuing supply-side challenges like semiconductor shortages, increase in cost due to new regulations, higher commodity prices and higher logistics cost, etc., have impacted overall sales in the auto industry," while adding that industry is closely watching the possible impact of the ongoing Russia-Ukraine war, as global supply chains could come under stress.
Wholesales of domestic passenger vehicles, two-wheelers, and three-wheelers dropped 23 per cent to 13,28,027 units last month, compared with 17,35,909 units in February 2021.
Overall, passenger vehicle dispatches in February 2022 dipped 6 per cent to 2,62,984 units, compared with 2,81,380 units in the same month of last year.
Siam said that passenger cars wholesales stood at 1,33,572 units last month as compared with 1,55,128 units in February 2021. However, utility vehicle dispatches increased to 1,20,122 units as against 1,14,350 units in the same period of last year.
Sales of vans, however, declined to 9,290 units last month, compared with 11,902 units in February 2021.
Similarly, total two-wheeler wholesales declined to 10,37,994 units in February as against 14,26,865 units in the same month last year, a drop of 27 per cent.
Scooter wholesales dipped to 3,44,137 units in February, against 4,65,097 units in the same period last month.
Motorcycle sales also declined to 6,58,009 units last month as against 9,10,323 units in February 2021.
Similarly, three-wheeler sales declined marginally to 27,039 units last month as compared with 27,656 units in February 2021.
Last month, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles declined 20 per cent to 17,95,514 units as compared with 22,53,241 units in February 2021.
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