Chip shortage | November PV wholesales lowest in seven years, two-wheeler lowest in 11 years

Semiconductor shortage continued to haunt the automobile industry in the festive month of November 2021 passenger vehicle wholesales falling 18.6% and two-wheeler sales nosediving over 34% year-on-year, according to data released by Society of Indian Automobile Manufacturers (SIAM) on Friday.

Passenger vehicle sales stood at 2,15,626 units in November 2021 as against 2,64,898 units in the year-ago month. Production for passenger vehicles during the month was also down 9.5% from 2,94,596 units to 2,66,552 vehicles.

Likewise, for two-wheelers the dispatches to the dealers fell to 10,50,616 units, as against 16,00,379 units in November 2020. Production for two-wheelers was down over 29% to 13,67,701 units, from 19,36,793 units in the year-ago month.

“Industry continues to face headwinds due to global semiconductor shortage. In the festive season, Industry was hoping to make up for the lost ground, but the sales in the month of November 2021, were lowest in seven years for passenger vehicles, lowest in 11 years for two-wheelers and lowest in 19 years for three-wheelers,” Rajesh Menon, Director General, SIAM said.

For three-wheelers, sales fell 6.64% to 22,471 units from 24,071 units in November 2020. Production for these vehicles also fell about 6% to 61,451 units from 65,460 units.

Exports for all three categories, however, saw a growth. Passenger vehicle exports grew 15.5% to 44,265 units, two-wheeler exports were up about 9% to 3,56,659 units and three-wheeler exports were higher by almost 14% to 42,431 units.

“Amidst the rising threat of Omicron, the new COVID-19 variant, Industry is pro-actively ensuring employee safety and monitoring any supply chain hiccups,” Mr. Menon added.