Thursday, Jul 07, 2022

Automobile Industry September Sales Impacted Due to Semiconductor Supply

Automakers, as per a standard norm, reveal their monthly sales on the first day of the succeeding month.

Automobile sales in September took a hit with a rise in input costs and a subsequent supply in semiconductors. This was demonstrated further in the automobile sale numbers for September revealed by the companies on Friday. New unveiling in the luxury sedan catalogue helped Nissan and Skoda spurt up sales in September, however, the increase in prices of electronic equipment like semiconductors used in vehicles did enough to bother their sales. 

The festive season which is inaugurated with Onam in Kerala did provide some optimism to its sales expectations. 

Automakers, as per a standard norm, reveal their monthly sales on the first day of the succeeding month. 

Maruti Suzuki sales fell approx 46.2 per cent YoY

Maruti Suzuki's total sales in September fell by approx 46.2 per cent on a year-over-year basis to 86,380 units. Domestic sales fell 54.9 per cent to 68,815 units for the same period. 

The Indian automaker attributed the downturn in sales to a shortage of electronic components. "Sales volume of the Company in September 2021 was adversely impacted due to shortage of electronic components. The Company took all possible measures to limit the adverse impact," the company said in its press release. 

Tata Motors sales spike 26 per cent YoY in September 

The company said its total sales rose 26 per cent to 55,988 units in September on a year-over-year basis. Domestic sales rose for commercial vehicles rose 30 per cent to reach 30,258 units in September compared to the year-ago period. 

"Semiconductor shortage continues to impact the auto industry globally. The impact of supply shortage due to restrictions in East Asia continued in September, leading to moderation of production and offtake volumes. The situation is fluid and we continue to work to mitigate the impact on our customer orders through an agile, multi-pronged approach," said Girish Wagh, Executive Director, Tata Motors. 

Mahindra and Mahindra auto-sales fell 21.7 per cent YoY

Mahindra and Mahindra's total auto sales fell approx 21.7% to 28,112 on a year-over-year basis in September 2021. Compared to the previous month, its sales fell 8.09 per cent. 

“The challenges around the supply of semiconductors continues to pose difficulties for the auto industry globally. We have taken several steps to mitigate the effect and are working towards managing the situation as best as possible...," CEO of the Automobile Division at Mahindra and Mahindra, Veejay Nakra stated in the press release. 

Bajaj recorded 16 per cent decline in sales 

The company stated its domestic sales in September fell 16 per cent compared to the year-ago period. It recorded a cumulative domestic sale of 1,92, 348 units. 

Skoda India saw a two-fold rise in domestic sales 

Skoda India said it recorded a two-fold rise in sales in September compared to the year-ago period. Its sales touched 3,027 units in September backed by its newly launched SUV vehicle Kushaq. 

The newly launched SUV had breached the 10,000 bookings milestone in September 2021. The midsize SUV was launched in June, this year. 

Nissan more than tripled its domestic sales

The automaker more than tripled its domestic sales to 2,816 units in September compared to the same period, last year. It added the company has recorded 18,591 units in domestic sales during the first half of the year. 

The Japanese automaker further stated it has received 65,000 customer bookings for its SUV,  Nissan Magnite. It spoke of the positive thrust due to the festive season. 

However, the company did acknowledge a supply-side issue with regards to semi-conductors. "....The challenge has been on the supply side with shortages of semi-conductors on which we continue to work with the supply chain partners to deliver more of the game-changing SUV Nissan Magnite to delight the Customers," said Rakesh Srivastava, Managing Director, Nissan Motor India Ltd.

Toyota recorded a 14 per cent uptick in domestic sales

Toyota Kirloskar Motors recorded a 14 per cent uptick in domestic sales in September on a year-over-year basis at 9,284 units. 

The company had announced that it would hike its prices by up to 2 per cent, effective October 1. 

Honda India's sales spike 49 per cent in September

The automaker said it registered a domestic sale of 11,177 units which amount to 49 per cent growth in sales compared to the year-ago period. It said the festivities which began with the Onam festival will extend to the rest of the markets with the festive season reaching its peak in subsequent months. 

However,  it added, "While we are quite optimistic on demand-side going forward, we are carefully monitoring the prevailing supply-side issues affecting the industry and any future COVID related disruptions”.