The month of October, which usually falls in the festive season, saw a steep decline in automobile sales due to the semiconductor shortage. As a result, the overall auto sales stood at 17,99,750 units in the last month, down by 25% compared to 23,91,192 units in the same month last year, according to the Society of India Automobile Manufacturers (SIAM). The total sales comprise passenger vehicles, two-wheelers and three-wheelers as the apex body release commercial vehicle data on a quarterly basis.
Commenting on the October 2021 sales data, Rajesh Menon, Director General, SIAM, said manufacturers were banking on the festive season to recover from the severe drop in sales they have faced in the early part of the financial year 2021-22. However, the shortage of semiconductors and the steep hike in raw material costs have been a major impediment for the industry.
In terms of different segments, the passenger vehicles sales in October 2021 were down by 27.15% at 2,26,353 units compared to 3,10,694 units of the same month last year.
The two-wheeler segment, which hasn’t seen revival ever since the pandemic happened, saw a decline of 25% at 15,41,621 units in October 2021 compared to 20,53,814 units in the same month last year.
On the back of the rise in e-commerce and economic activity due to increasing last-mile connectivity, three-wheelers saw a marginal uptick of 19% at 31,774 units in October 2021 compared to 26,684 units in the same month last year.