Auto deliveries down 11% in January to 14 lakh units – Times of India

NEW DELHI: The auto industry opened the new year on a weak note with deliveries of volume-intensive two-wheelers and cars and SUVs staying down in January (year-on-year), even though the commercial vehicles sector witnessed a healthy offtake.
According to numbers released by dealers’ body FADA (Federation of Automobile Dealers’ Associations), automobile deliveries in the month (across various segments) stood at 14. 4 lakh units against 16. 1 lakh units in January 2021, down 10. 6%.
Deliveries of passenger vehicles — comprising cars, SUVs and MPVs — stood at 2. 6 lakh units in January this year against nearly 2. 9 lakh units in January last year, down 10. 3%. The fall in retails has been due to shortage of semiconductor chips, which has been impacting the industry for over a year now.

Several companies like Maruti Suzuki, Hyundai, Kia, Mahindra and Tata Motors have long waiting on many of their vehicles, but have been unable to deliver due to part shortages. “Semiconductor shortage is also showing some signs of easing as many passenger vehicle companies assure of better dispatch. We hence expect vehicle availability to improve going further,” FADA president Vinkesh Gulati said.
However, the situation on the two-wheeler front is weak, not because of parts shortages but more due to economic uncertainties, hike in fuel prices, and rise in vehicle prices. According to FADA numbers, nearly 10. 2 lakh two-wheelers were retailed in January against 11. 7 lakh units in January last year. “The two-wheeler category has been impacted by rural distress, coupled with price rise and Omicron wave which played a villain’s role for the segment,” Gulati said.