Passenger vehicle production and sales hit by semiconductor shortage
New Delhi/IBNS: The despatch of passenger vehicles dropped by 27 percent year-on-year in October due to semiconductor shortage forcing automobile manufacturers to reduce production, auto industry body SIAM said on Friday.
Passenger vehicle sales last month stood at 2,26,353 units, while it was 3,10,694 units in the year-ago period.
Two-wheeler dispatches to dealers also declined by 25 percent in October, as compared to 20,53,814 units in October 2020, said the Society of Indian Automobile Manufacturers (SIAM).
There was a reduction of 26 percent in motorcycle dispatches last month to 10,17,874 units. This was 13,82,749 units in the year-ago period.
"Manufacturers were banking on the festive season to recover from the severe drop in sales they have faced in the early part of the financial year 2021-22. However, shortage of semiconductors and steep hike in raw material cost have been a major spoilsport for the industry," SIAM Director General Rajesh Menon said.
Further sales of scooters fell 21 percent to 4,67,161 units, from 5,90,507 units in the year-ago period, SIAM said.
Sales of all types of passenger vehicles, three-wheelers, two-wheelers and quadricycles categories last month, reduced by 25 percent to 17,99,750 units, from 23,91,192 units in October 2020.