Supply chain woes: Auto sales in slow lane

Global chip shortage Denting October Sales Card

- Maruti Suzuki and Hyundai suffered a double-digit drop in sales

- Kia India, Honda Cars and MG Motor also saw a fall in dispatches

- However, Tata Motors, Mahindra, Nissan and Skoda managed to post positive numbers

New Delhi: Leading carmakers Maruti Suzuki and Hyundai witnessed a double-digit drop in sales in October on account of the global semiconductor shortage impacting production.

Kia India, Honda Cars and MG Motor also saw a fall in dispatches in October 2021 as compared with October 2020. However, companies like Tata Motors, Mahindra, Nissan and Skoda managed to post positive numbers last month despite the supply chain challenges. India's largest carmaker Maruti Suzuki India (MSI) said its domestic sales slipped 32 per cent to 1,17,013 units last month as against 1,72,862 units in October 2020.

"While the shortage of electronic components continued to affect the production of vehicles during the month, the company took all possible measures to minimise the impact. Accordingly, the company sold more vehicles than the sales volume expected at the start of the month," the auto major stated.

Sales of mini cars, comprising Alto and S-Presso, fell 23 per cent to 21,831 units as compared to 28,462 in the same month last year. Similarly, sales of compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, slumped 49 per cent to 48,690 units as against 95,067 cars in October last year.

Utility vehicle sales, including Vitara Brezza, S-Cross and Ertiga, however rose 7 per cent to 27,081 units as compared to 25,396 earlier. Rival Hyundai Motor India reported a 35 per cent decline in domestic sales last month at 37,021 units. It had dispatched 56,605 units to dealers in October 2020. The global semiconductor supply constraint continues to be a challenge, resulting in lower production across the industry, the company noted. Kia India witnessed a 22 per cent year-on-year decline in wholesales at 16,331 units last month, while Honda Cars saw its domestic dispatches go down by 25 per cent to 8,108 units.

"While the situation still remains dynamic due to the ongoing supply side challenges, the company is making all possible efforts to maintain a steady delivery pace and catering to the market demand effectively," said Rajesh Goel, senior V-P and director (marketing and sales), Honda Cars India, said.