Maruti Suzuki sales drop 46% in September due to chip shortage


A global shortage of semiconductors in the supply chain negatively impacted the passenger vehicle segment ahead of the festival season, with automakers posting sharp declines in sales volumes in September.

The country’s largest automaker, Maruti Suzuki India (MSI), on Friday announced a 46.16% drop in sales to 86,380 units in September. It had sold 1,60,442 units during the same period last year. The second-largest automaker, Hyundai, also reported a 23.6% drop in total sales to 45,791 units in September. Hyundai sold 59,913 units in the same month last year.

However, Tata Motors’ domestic sales grew 26% to 55,988 units from 44,410 units in September 2020. Its numbers were driven by the boom in the commercial vehicle segment where the company sold 30,258 units. in the domestic market, marking an increase of 30%. growth of 23,211 units sold last September.

Chips, which play a vital role in the production of internal combustion engines, are used in various functions in feature-rich cars. Among other things, they are an integral part of the sensors and controls of a vehicle.

Maruti’s domestic sales fell 54.9% to 68,815 units last month from 1,52,608 units in September 2020, the company added. The company’s sales volume in September 2021 was negatively affected due to the shortage of electronic components. The company has taken all possible measures to limit the negative impact, ”said the automotive major.

The chip shortage has forced several OEMs (original equipment manufacturers) to slow down production, extending wait times for popular, feature-rich, high-end models.

For Maruti, sales of mini-cars, including Alto and S-Presso, fell 45.18 percent to 14,936 units from 27,246 units in the same month last year. Likewise, sales of the compact segment, comprising models such as Swift, Celerio, Ignis, Baleno and Dzire, fell 75.19% to 20,891 units from 84,213 cars last September. Sales of the Ciaz midsize sedan fell 36.04% to 981 units, from 1,534 units in September 2020.

As for Hyundai, its domestic sales fell 34.2% to 33,087 units from 50,313 units in September 2020, the company said. Exports rose 34.3 percent to 12,704 units from 9,600 units last September.

Industry executives and analysts who follow the industry have said the chip shortage could continue for some time.

“Going forward, demand for cars and SUVs is expected to remain strong over the coming holiday season; However, the electronic component supply situation may continue to experience difficult times, ”said Shailesh Chandra, president of the passenger vehicle business unit at Tata Motors.

Brokerage firm Prabhudas Lilladher said most dealers could be out of stock before Diwali if production issues were not addressed. “For passenger vehicles, the semiconductor shortage remains a concern and dampens dealer hopes as inventory days will be reduced to 10-15 days by the end of September 2021,” analysts said. of the company in a recent note to investors.

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