November SIAM data shows cars in slow lane

Domestic wholesale (shipments to dealers) of passenger car sales declined 33% year-on-year (yoy) to 1,00,906 units in November, from 1,49,949 units in the same month in 2020.

However, sales of commercial vehicles (UVs) edged up (by over 1%) during the month to reach 1,051,091 units from 1,03525 units in November 2020. The growing demand for these vehicles also reflects the trend in the market. Marlet. .

Double digit decrease

However, the segment was unable to progress towards an improving market, causing total PV panel sales to decline 19% year-on-year to 2,648,898 units in November from 2,15,626 units in the same month a year ago. year.

The latest report from the Society of Indian Automobile Manufacturers (SIAM) shows that total sales of two-wheelers (2w) also fell 34% year-on-year to 10 50,616 units last month, from 1,600,379 units in November. 2020. Scooter (3,06,899 units vs. 5,02,561) and motorcycle sales (699,949 units vs. 10,26,705) also registered a decrease of 39 and 32% year-on-year, respectively.

Sales of three-wheelers (3w) were down 7% year-on-year to 22,471 units from 24,071 units in November 2020, the data showed. Overall, the grand total of all categories fell 32% year-on-year to 1288,759 units in November, from 18,889,348 units in the same month last year.

Global headwinds

“The industry continues to face headwinds due to the global semiconductor shortage. During the holiday season, the industry hoped to make up for lost ground, but November sales were the lowest in seven years for passenger vehicles, the lowest in 11 years for two-wheelers and the lowest in 19 years for three-wheelers, ”said Rajesh. Menon, Director General of SIAM.

“Amid the growing threat from Omicron, the industry is proactively ensuring employee safety and monitoring any supply chain issues,” he added.

Analysts say the impact of disruptions in global semiconductor supply is clearly visible now that November saw a drop to 2.15 lakh units. Despite the increase in demand during the holiday season, sales of photovoltaic panels fell.

“As the semiconductor shortage continues to create an imbalance with reduced production and extended delivery times, consumer confidence is expected to wane further. The risks of Omicron-related restrictions are also likely to keep manufacturers and consumers on the cautious side. Domestic sales are expected to increase with stabilization of the semiconductor supply chain and lower oil / commodity prices, ”said Saket Mehra, Partner and Automotive Sector Leader at Grant Thornton Bharat.

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