Carmakers wary of chip crunch, fuel prices

New Delhi (TIP): Passenger car makers increased wholesale dispatches in June from May after states eased mobility restrictions. However, industry experts are worried over how the sharp rise in fuel and steel prices, semiconductor shortage and a possible third wave impact vehicle sales. Dispatches of passenger vehicles to dealerships more than doubled to 231,633 units in June from 41,536 units in May, when India’s deadly second wave peaked. Passenger car sales nearly tripled to 121,378 units, while sales of utility vehicles more than doubled to 100,760 units during the month, according to data compiled by the Society of Indian Automobile Manufacturers (Siam) on Wednesday. In the quarter ended March, most passenger vehicle makers reported sustained recovery in retail sales, while supply constraints due to a shortage of semiconductors led to a longer waiting period for certain models. Many of them have started production in all three shifts from June and have set higher targets for July.

Maruti Suzuki India Ltd, the country’s largest carmaker, more than tripled domestic dispatches sequentially to 124,280 units in June from just 35,293 units in the preceding month. Hyundai Motor India Ltd reported a 62% month-on-month rise in wholesale dispatches to 40,496 units in June.

Tata Motors’ passenger vehicle wholesales rose 59% to 24,110 units in June, and Mahindra and Mahindra’s more than doubled to 16,913 units compared to just 8,002 units in May.

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