Shoppers ready to drive dwelling their dream vehicles and SUVs this festive season might have to attend longer with passenger car makers more likely to fall quick by as much as 100,000 models in October manufacturing as a result of extreme scarcity of semi-conductor chips.

Senior business executives ET spoke to indicated wholesale volumes will decline for the second straight month by 25-28% to 2.4-2.5 lakh models in October, additional decreasing stock for deliveries throughout the upcoming festivals of Navratri and Diwali. This could be the bottom wholesale quantity recorded within the month since October 2014, when producers dispatched 221,163 passenger autos from factories, reveals information accessible with business physique Society of Indian Vehicle Producers (SIAM). Automakers in India report wholesale volumes and never retail gross sales to prospects.

Passenger car gross sales fell 37% to round 185,000 models in September 2021. About 334,000 models had been offered in October 2020.

The provision challenges have surfaced at a time when the business is already sitting on bookings of over half one million models. As per information accessible with automotive consultancy agency JATO Dynamics, the ready interval on fashionable fashions similar to Hyundai Creta presently stretches into 12-32 weeks, Kia Sonet 15-20 weeks, Maruti Suzuki Ertiga 12-14 weeks, Nissan Magnite 12-16 weeks and Tata Nexon 10-12 weeks.

“Carmakers often construct stock throughout the Shradh interval, when retails are sluggish, forward of the festivals of Navratri and Diwali when demand spikes. Nevertheless, this yr, because of the scarcity of semi-conductors, the anticipated build-up of inventory didn’t materialise”, stated Shashank Srivastava, senior govt director (advertising and marketing and gross sales) at Maruti Suzuki. Srivastava declined to specify quantity estimates for month.

Earlier this month, market chief Maruti Suzuki stated car manufacturing quantity will probably be 60% of regular manufacturing in October owing to a provide constraint of digital elements as a result of a scarcity of semi-conductors. The corporate had minimize output by 60% in September.

Carmakers Hyundai Motor India, Kia India and Mahindra & Mahindra (M&M) too reported sturdy double-digit drop in manufacturing unit dispatches in September on again of provide constraints.

Carmakers sometimes improve channel stock by 10-15 days in September to spice up retail gross sales in October and November. “Pageant season in India often augurs a peak in car sales, however chip shortages are more likely to curtail stock considerably this yr”, confirmed Ravi Bhatia, president of JATO Dynamics.

Auto retailers have stated passenger car sellers are left with little stock, besides these for some slow-moving fashions. “Given low provides, festive reductions on passenger autos are 25-30% decrease this yr”, stated Nikunj Sanghi, former president at Federation of Automotive Sellers Affiliation (FADA) and managing director at JS Fourwheel Motors.



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