The passenger vehicle segment sold 262,984 units in the local market last month, a decline of 6.5% as compared to 281,380 units sold in the year-ago period.
Had Tata Motors’ volume — 39,981 passenger vehicles — been included, the decline would have been about 2% less.
Tata Motors has stopped reporting sales on a monthly basis to industry body Society of Indian Automobile Manufacturers (SIAM).
Demand remained promising despite supply crunch, with most car makers registering healthy bookings.
However, two-wheeler makers faced trouble as consumers stayed away from buying, especially at the entry level. Two-wheeler sales declined 27% to 1,037,994 units in February. Scooters sales declined 26% to 344,157 units last month, while motorcycles sales fell 28% to 658,009 units.
Apart from limited availability of semi-drivers, which hampered production, increase in vehicle acquisition cost due to implementation of new regulations, higher raw material prices and logistics expenses affected sales in the industry.
Rajesh Menon, Director General, SIAM, said, “There has been a decline in sales in the passenger vehicle, two-wheeler and three-wheeler categories in the month of February 2022 as compared to February 2021. Continuing supply-side challenges like semiconductor shortage, cost escalation. As for the new regulations, higher commodity prices, higher logistics cost, etc. have affected the overall sales in the auto industry.”
Three-wheeler sales declined 2% to 27,039 units last month.
While chip shortages are expected to improve and normalize by the end of the year, industry executives are concerned that if the Russian invasion of Ukraine continues for some more time, there is likely to be an additional impact on the supply chain, which in turn Vehicle sales may be adversely affected
“The industry is closely watching the potential impact of the ongoing conflict in Ukraine, as the global supply chain could come under strain,” Menon said.
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