Chip Shortage Pulls Down Overall Auto Retail Sales In September

Automobile retail gross sales within the nation witnessed a 5 per cent year-on-year drop final month amid a decline in two-wheeler and tractor dispatches throughout the interval.

As per vehicle sellers’ physique FADA, complete retail gross sales final month stood at 12,96,257 items, down 5.27 per cent, from 13,68,307 items in September 2020.

While two-wheeler and tractor dispatches declined, different segments like passenger automobiles, industrial automobiles and three-wheelers noticed a rise in retail gross sales final month, as in comparison with the identical interval a 12 months in the past.

According to the Federation of Automobile Dealers Associations (FADA), which collected automobile registration information from 1,357 out of the 1,562 regional transport workplaces (RTOs), two-wheeler gross sales stood at 9,14,621 items final month, down 11.54 per cent from 10,33,895 items in September 2020.

Similarly, tractor retail gross sales declined by 23.85 per cent to 52,896 items final month, as towards 69,462 items within the year-ago interval.

PV gross sales alternatively stood at 2,33,308 items in September, up 16.32 per cent from 2,00,576 items in the identical month final 12 months.

Similarly, industrial automobile retails elevated by 46.64 per cent to 58,820 items, as in comparison with 40,112 items in September 2020.

Three-wheeler gross sales elevated by 50.9 per cent to 36,612 items final month, as towards 24,262 items within the year-ago interval.

“The two-wheeler category continues to play spoilsport as the entry level segment is yet to witness healthy growth. This segment’s performance is now becoming critical for the overall segment to come back on the path of recovery as dealer inventory has risen to 30-35 days in anticipation of a good festive season,” FADA president Vinkesh Gulati stated in a press release.

Semiconductor scarcity has additionally began impacting the over 150 cc phase, he added.

On the PV phase, Gulati famous: “As we enter the core of this year’s festive season, the full blown semiconductor crisis continues to create hindrance in PV sales as vehicle inventory at dealers dip to record lows of 15-20 days during the current fiscal. With high demand in this segment, long waiting periods continue to frustrate and keep enthusiast buyers in a fix.”       The three-wheeler phase is now exhibiting clear indicators of tactical shift to EVs, he stated.

“With offices and educational institutions slowly opening up, electrification of three-wheelers will gather a greater momentum in months to come,” he added.

The industrial automobile phase is lastly exhibiting better energy as all sub-categories proceed to develop year-on-year, Gulati said.

On enterprise outlook, he famous: “With India entering the 42-day festive period beginning today, the near term outlook for this year’s festive season will be a mixed bag. While dealers have increased their inventory in the two wheeler category, PV inventory is at the lowest during this fiscal year due to the ongoing semiconductor crises.”  The chip scarcity appears much less more likely to ease inside the subsequent two quarters, Gulati stated.

“As a result, PV sales are likely to stagnate going ahead even though OEMs are coming ahead with new launches to keep the customer excited,” he added.

OEMs refers to unique gear producers.

However, skyrocketing gas costs and a drop in buying energy of entry-level prospects in rural India are maintaining themselves away from fulfilling their mobility wants, Gulati said.

As per FADA, the full vehicle retail gross sales throughout the April-September interval this 12 months rose by 35 per cent to 71,85,561 items as in contrast with year-ago interval however remained 29 per cent much less when in comparison with April-September interval of 2019.


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