InvestorQ : How were the auto sales numbers for the month of August 2021?
Dhwani Mehta made post

How were the auto sales numbers for the month of August 2021?

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Dilmini Mercia answered.
3 months ago
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How were the auto sales numbers for the month of August 2021?

If we look at the wholesale numbers, there is clear pressure. For example, automobile wholesales in India fell by 11% in Aug-21 on yoy basis. According to SIAM, this was largely on account of the shortage of microprocessors. Even two wheeler dispatches from the manufacturers to the dealers fell by 15% in August on a yoy basis. Specifically, motorcycle sales were also down by 20%. The chip shortage has created a huge production challenge.

However, 3-wheeler wholesales were up 60%, albeit on a lower base. That is because, these 3 wheelers are not too microchip intensive. Apart from the microchip shortage, the auto industry is also reeling under the supply chain challenges. This is more prominent because the use of semiconductors in the auto industry has gone up substantially in recent times on the back of technological advancements and new models.

Auto accounts for 10% chip demand. The other reason many manufacturers are shutting production or cutting down on output is high commodity prices which has been impacting the cost structures of auto industry for some time now.

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