Car sales rise 11% while chip crunch worries firms

Nearly all carmakers reported sales growth in August due to low interest rates, strong demand for SUVs and new launches, which pushed volumes for nine automakers, who control more than 90 per cent of sales in the country. However, market leader Maruti Suzuki saw a drop in sales last month.

Total domestic sales of nine carmakers in August grew 11 per cent to 246,096 units compared to the same month last year, as per sales data announced by them on Wednesday.

Wholesales domestic volumes from factory gates to dealerships at Maruti Suzuki fell 8.71 per cent to 103,187 units in August due to a production cutback announced by its contract manufacturing company at the Gujarat plant, which had cut production on Saturdays due to semiconductor shortages.

“Sales volume of the company in August 2021 was affected due to electronic components shortage,” Maruti Suzuki said in a statement. It has warned that the September

volumes would be only 40 per cent of the ‘normal production level’ due to non-availability of chips.

Hyundai Motor, India’s second biggest car-maker, recorded 2.3 per cent growth in volumes to 46,866 units last month compared to last year.

Tata Motors, India’s third largest carmaker, recorded 51 per cent growth in retail sales in August to 28,018 units. This included 1022 units of electric vehicles (EVs).

Kia India, which dethroned Mahindra & Mahindra to grab the fourth spot, sold 16,750 units in August, growing 55 per cent compared to year-ago numbers.

Sales at Mahindra and Mahindra, utility vehicle specialist, also grew 17 per cent last month to 15,973 units. The growth came on the back of new launches XUV700 and Bolero Neo.

Sales at Toyota Kirloskar rose 130 per cent to 12,772 units compared with last year, spurred by robust demand for the Innova Crysta and Fortuner.

Honda Cars too posted 49 per cent growth at 11,177 units in August, boosted by its best seller Amaze, which drove volumes.