Shipments of automobiles from factories to dealerships across the country fell 23% in February as various supply-side challenges, including semiconductor shortages and rising vehicle prices due to the implementation of new regulations, continued to weigh on the demand scenario, industry association SIAM said on Friday.
Wholesale sales of domestic passenger cars, two-wheelers and three-wheelers fell 23% to 13,28,027 units last month, compared with 17,35,909 units in February 2021.
Overall, passenger car deliveries in February 2022 fell by 6% to 2,62,984 units, compared to 2,81,380 units in the same month last year.
Wholesale passenger car sales last month totaled 1,33,572 units compared to 1,55,128 units in February 2021. However, commercial vehicle deliveries increased to 1,20,122 units compared to 1,14,350 units in the same period last year.
However, van sales fell to 9,290 units last month, compared to 11,902 units in February 2021.
Similarly, total wholesale sales of two-wheelers fell to 10,37,994 units in February from 14,26,865 units in the same month last year, down 27%.
Scooter wholesale sales fell to 3,44,137 units in February, down from 4,65,097 units in the same period last month.
Motorcycle sales also fell last month to 6,58,009 units from 9,10,323 units in February 2021.
Similarly, three-wheeler sales fell slightly last month to 27,039 units, compared to 27,656 units in February 2021.
“Ongoing supply-side challenges such as semiconductor shortages, cost increases due to new regulations, higher raw material prices and higher logistics costs, etc. have impacted overall sales in the auto industry,” said the director-general of the Society of Indian Automobile Manufacturers (SIAM). said Rajesh Menon.
The industry is closely monitoring the potential impact of the ongoing conflict between Russia and Ukraine as global supply chains may come under pressure, he added.
Last month, total production of passenger cars, three-wheelers, two-wheelers and four-wheelers fell by 20% to 17,95,514 units, compared to 22,53,241 units in February 2021.