Monday, May 02, 2022
By Kamal Swami
Car Sales In India Continue To Decline Despite A Huge Demand
The sales of passenger vehicles in India continue to decline successively in the month of April this year, despite strong demand. The first reason, that seems responsible for this decline is the shortage in the supply of semiconductors in the global market.
The decline has adversely impacted sales of car manufacturers in the country. Where the number one and number two car manufacturers, the Maruti Suzuki India Limited and Hyundai India limited, respectivey, have recorded a decline of 10% in their sales, the car manufacturers like Tata Motors Skoda Auto India, and Toyota Kirloskar Motors have performed well with their newly launched vehicles. In a statement by the Indo-Japanese carmaker MSIL, The shortage of electronic components had a minor impact on the production of vehicles, mainly domestic models”. According to company sources, they adopted all possible measures to control the impact.
In the words of Yuichi Murata, Director (Marketing and Sales), HCIL, although there is an improvement in the buying preferences of buyers, the decline in the supply of essential components remained a challenge for the industry to cater to the increasing demand of buyers. However, he seems optimistic about the future and added, we hope that the situation will improve and car manufacturers will be able to maintain a balance between demand and the supply of vehicles. The Japanese carmaker has recorded a decline of 13% in sales during April 2022.
Industry experts believe that with the continuation of friction in demand and supply, the impacts of COVID-19, in China will continue to affect the supply chain. In a statement from MG Motor India, although there is an encouraging increase in demand for Hector, Astor, and Gloster, there is a fluctuation in production and other activities due to the global supply chain and the current lockdown in different corners of the world.