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India Car Sales Drop 14% In August As Chip Shortage Hurt Supplies

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India Car Sales Drop 14% In August As Chip Shortage Hurt Supplies

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Overall the auto sales fell 3.29% over the preceding month.

This comes as the auto industry coming out of the second wave disruption that led to dealership closures and staggered manufacturing shutdowns as the lockdown restrictions are eased, is hit with severe shortage of chips, the brains of electronic components inside cars that control everything from steering to emissions.

Semiconductors crisis which began last December worsened amid mounting infections in the key producer of Malaysia, is hurting automakers severely in the country. That even forced Maruti Suzuki India Ltd., India’s largest carmaker, to announce production holiday in August.

“The global semi-conductor shortage continues and now it is having an acute impact on output across the auto industry,” Rajesh Menon, director-general at SIAM said, adding that high commodity prices are increasing the cost of production.

“Against such strong headwinds, SIAM members are working hard to meet customers’ demand and expectations, while ensuring safety of its people across the value chain.”

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