Posted on 22 Mar 2022
Surging flat steel prices along with the prevailing shortage of semiconductors have impacted India’s automotive industry. The nation’s automotive output plunged 25% on-year to 1,795,514 units in February, reports the Society of Indian Automobile Manufacturers (SIAM). Output includes passenger vehicles (PV), commercial vehicles, three-wheelers, two-wheelers and quadricycles.
Production, however, was marginally up by 2% on-year to 20,042,351 units during April 2021-February 2022, against 19,572,565 units produced a year earlier, Kallanish notes.
Passenger vehicle sales plunged 7% on-year to 262,984 units in February. Three and two-wheeler sales clocked at 27,039 units and 1,037,994 units, respectively.
“Sales in the month of February 2022 declined compared to February 2021, across passenger vehicle, two-wheeler and three-wheeler categories,” says SIAM director general Rajesh Menon.
“Continuing supply side challenges like semiconductor shortages, increase in cost due to new regulations, higher commodity prices, higher logistics cost etc. have impacted overall sales in the auto industry. Industry is closely watching the possible impact of the on-going conflict in Ukraine, as global supply chains could come under stress,” Menon concludes.
Source:Kallanish
