Automobile Dispatches Decline due to Supply-side Challenges

According to the industry group, SIAM, automobile dispatches from factories to dealerships across the country fall down 23% in February, due to various supply-side challenges, including semiconductor shortage, and a rise in vehicle prices with the implementation of new regulations.

Wholesale of domestic passenger vehicles, two-wheelers and three-wheelers fell to 1,328,027 units last month. Overall passenger vehicle dispatches in February 2022 fell down 6% to 262,984 units.

Sales of vans declined to 9,290 units during last month. Similarly, a total of two-wheeler sales declined to 1,037,994 units and scooter wholesale dipped to 344,137 units in February. 

Analysts said they expect slumping local demand, rising car prices, and supply-side challenges across all segments to continue to curb deliveries in the automobile sector. 

Director-General of SIAM, Rajesh Menon has said that the industry is closely watching the possible impact of the ongoing Russia-Ukraine conflict as supply chains could come even more under stress.

The total production of passenger vehicles three-wheelers, two-wheelers and quadricycles in February declined 20% to 1,795,514 units as compared with 2,253,241 units in February 2021.