The shortage of crisps spoils the festive atmosphere
Car dealer inventories remained tight, hurting supply ahead of festival season as the global chip shortage continues to hurt production.
Vehicle registrations – a measure of dealer sales – fell 6.4% in the previous month and 4.7% year-on-year to 13.03 lakh units in September, according to data from 1,493 offices regional transport services in 33 States and Union Territories assembled from the website. of the Ministry of Road Transport and Highways. This is the second consecutive monthly decline.
As retail sales of passenger cars and two-wheelers fell from the previous month in September, commercial vehicle manufacturers saw an improvement, driven by demand from the construction and infrastructure segments.
Plant shipments also fell month over month for most automakers in September. Maruti Suzuki India Ltd. reduced production to 40% of normal levels. This has lengthened the wait times on popular models. As the chip shortage that started in December persists, India’s largest automaker now expects volumes to drop to 60% of usual levels in October, a month that marks the start of festival season.
With the exception of Tata Motors Ltd., all of the major passenger car manufacturers tracked by BloombergQuint were out of inventory – the gap between wholesale and retail sales – at the end of September.
The maker of the Safari and Tiago told BloombergQuint in August that it was buying supply chain inventory during the lockdown imposed to curb the second wave of Covid-19. This limited the impact of the chip crisis and helped the company’s stock dealers.
While two-wheeler manufacturers were able to increase inventories in September, demand suffered as popular variants were unavailable and a series of price hikes and rising fuel prices increased the cost of ownership.
Commercial vehicles also saw a build-up of inventory even as demand increased.
The bulk of retail sales in September came from Uttar Pradesh, Maharashtra, Gujarat, Karnataka and Tamil Nadu.
Uttar Pradesh and Tamil Nadu reported two-wheeler sales of over 1 lakh each during the month. Demand for commercial vehicles came from Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Karnataka.