Chip shortage: PV sales decline 13% in Dec, up 27% in CY21

SIAM said that the chip shortage situation is not expected to dramatically change in the short term, but expressed hope that things will improve soon.

Wholesale despatches of passenger vehicles declined 13% to 2,19,421 units year-on-year in December 2021 on account of semiconductor woes, but if the calendar year performance is seen, sales grew 27% to 30.82 lakh units against 24.33 lakh units in 2020. While this growth was, of course, due to the low base of 2020 when there was a period of total lockdown, despatches above the 30-lakh unit have happened only for the third time since the Society of Indian Automobile Manufacturers (SIAM) started releasing such data.

Sales of PVs had crossed the 30-lakh mark for the first time in CY 2017 when total sales stood at 32.3 lakh units. In CY 2018, PVs were at 33.95 lakh units and declined to 29.62 lakh units in CY 2019.

On Friday, while releasing the sales data for December and CY 2021, SIAM said that the chip shortage situation is not expected to dramatically change in the short term, but expressed hope that things will improve soon. On a year-on-year basis, sales during December continued to decline across segments like PVs and two-wheelers. Across categories, it was down 11%.

The sales numbers in the October-December quarter were also not as per expectations for most of the industry players as the festival season sales were very weak as compared to the past. Here, sales across categories were down 22%.

“If we look at the third quarter figures, passenger vehicle sales were the lowest in the last five years while the two-wheeler sales were the lowest in the last nine years. Similarly, commercial vehicle sales were the lowest in the last five years. Three-wheeler segment is the worst-impacted, with sales lowest in the last 13 years,” SIAM president Kenichi Ayukawa said. He added that for the sustainable growth of the industry, there is a need for both demand improvement and easing out of supply chain challenges.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.