SIAM Report: 23% reduction in vehicle dispatches in February, semiconductor shortage affecting deliveries
Vehicles arriving at dealerships from auto companies in February 2022 saw a 23% reduction across the country. According to SIAM (Society of Indian Automobile Manufacturers), an organization of the auto industry, the problem in the supply chain is due to the shortage of semiconductors and the cost of vehicles.
In February 2022, 13,28,027 units were sold while the vehicle industry registered a total sales of 1,735,909 units in February 2021. This also includes OEM dispatches to dealers of passenger vehicles, two-wheelers, three-wheelers and quadricycles.
Passenger vehicle sales down
Passenger vehicle sales declined 6.5% to 262,984 units in February 2022. Which was 281,380 units in the same month of 2021. In February this year, passenger cars sales stood at 133,572 units, utility vehicles (UV) sales at 120,122 units and vans at 9,290 units.
Continued growth in UV sales
While sales of passenger cars and vans have declined over the past year, sales of UV have been steadily increasing. From 78,674 units in February 2020, the segment has grown to 114,350 units in February 2021 and then to 120,122 units in February 2022. SIAM’s figures do not include sales of BMW, Mercedes, Tata Motors and Volvo Auto.
According to Rajesh Menon, Director General, SIAM, there has been a decline in sales in the passenger vehicle, two wheeler and three wheeler categories in the month of February 2022 as compared to February 2021. Continuous supply challenges like shortage of semiconductors, rising costs due to new regulations, high commodity prices, etc. have affected the overall sales of the auto industry.
He further added that the auto industry is closely monitoring the impact of the ongoing war in Ukraine, as it could affect the global supply chain.
Two wheelers segment sales down 27.2%
The two wheelers segment saw the biggest decline in sales in February 2022, registering a decline of 27.2% at 1,037,994 units. Which was 1,426,865 units in the same period last year. OEMs registered sales of 3,44,137 scooters, 658,009 motorcycles and 35,848 mopeds.
Three Wheelers Vehicles registered a decline of 2.2% at 27,039 units in February 2022 as compared to sales of 27,656 units in February 2021. Passenger vehicle sales increased to 19,369 units from 18,617 units last year. However, sales of heavy vehicles declined to 7,670 units this year as compared to 9,039 units in February last year. SIAM said that in the month of February 2022, the total production of passenger vehicles, three wheelers, two wheelers and quadricycles stood at 1,795,514 units.
