Automobile wholesales in India declined 11 percent year-on-year in August, because the semiconductor shortage hit production processes across the industry, SIAM said on Friday.

The total wholesales across categories, excluding commercial vehicles, declined to fifteen ,86,873 units last month, compared to 17,90,115 units in August 2020.

According to the newest data by the Society of Indian Automobile Manufacturers (SIAM), two-wheeler dispatches from OEMs to dealers declined last month while passenger vehicle and three-wheeler wholesales witnessed a rise over August 2020.

Two-wheeler dispatches from the OEMs to dealerships declined by 15 percent to 13,31,436 units in August, compared to fifteen ,59,665 units within the year-ago period.

Motorcycle sales were at 8,25,849 units last month as against 10,32,476 units in August 2020, down 20 percent.
Similarly, scooter dispatches declined 1 percent to 4,51,967 units last month from 4,56,848 units a year ago.

The total passenger vehicle sales — including dispatches of cars, utility vehicles and vans — from OEMs to dealerships increased by 7 percent to 2,32,224 units in August compared to 2,15,916 units within the same month last year.

Three-wheeler wholesales increased 60 percent to 23,210 units last month as against 14,534 units a year ago.

Commenting on the August sales, SIAM Director General Rajesh Menon said the Indian industry is reeling struggling thanks to supply chain challenges.

“The global semiconductor shortage continues and now it’s having an acute impact on output across the auto industry,” he added.

The usage of semiconductors within the auto industry has gone up globally in recent times, with technological advancements and new models coming with more and more electronic features like Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems, besides the engine control unit.

However, the auto industry accounts for about 10 percent of the general semiconductor demand, with the remainder coming from the electronic appliances and gadget industry, like mobile phones and laptops, among others.

Menon noted that additionally to the chip shortage, high commodity prices remained a challenge, because it was impacting the value structures of the auto industry.

“Against such strong headwinds, SIAM members are working hard to satisfy customers’ demand and expectations, while ensuring the security of its people across the worth chain,” he added.

Looking at the cumulative sales from April to August 2021, the passenger vehicle segment remains below the extent of 2016-17, the two-wheeler segment is less than the extent of 2011-12, and therefore the three-wheeler segment is behind by a few years , Menon noted.

In the passenger vehicle segment, the country’s largest carmaker Maruti Suzuki India (MSI) dispatched 1,03,187 units last month, down 9 percent from 1,13,033 units in August 2020. On the opposite hand, Hyundai Motor India sold 46,866 units last month, compared to 45,809 units in August 2020.