‘PV sales dip 19% in November as chip shortage hits festive demand’

Auto gross sales continued to face headwinds attributable to world semiconductor scarcity with the wholesale despatches throughout November, a festive month, being one of many worst.
As per information launched by Society of Indian Automobile Manufacturers (SIAM), gross sales in November had been lowest in seven years for passenger autos (PVs), lowest in eleven years for two-wheelers (2Ws) and lowest in 19 years for three-wheelers (3Ws). The trade’s hope of constructing up for the misplaced floor throughout the festive season was dashed, SIAM stated.
Wholesale despatches throughout classes final month declined 32 per cent year-on-year (y-o-y) to 12,88,759 models. PV wholesales declined 19 per cent at 2,15,626 models. Similarly, whole 2W gross sales declined sharply by 34 per cent to 10,50,616 models and whole 3W despatches stood at 22,471 models, down 7 per cent y-o-y.

Shortage of semiconductor has led to chop in manufacturing by all the key PV producers, which has led to provide aspect constraints resulting in lengthy ready checklist for well-liked promoting fashions.
Though the 2W trade doesn’t get that closely impacted by the semiconductor scarcity as digital gadgets are principally used of their high-end fashions, their home demand continues to be subdued as rural demand has been hit attributable to lack of revenue publish the second wave of Covid-19.

“The fall in two-wheeler volumes is worrying as this shows the continuing economic stress due to job losses and pay cuts. The reasons for these are the pandemic and the increase in the operating expenses, owing to the rise of petrol prices. Additionally, the rural economy has been unable to fire up sales,” Ashim Sharma, accomplice and group head, NRI Consulting and Solutions, stated.   FE