Rising input costs could affect the Indian automobile industry
According to MG Motor India President and Managing Director Rajeev Chaba, the hike in raw material and semiconductor prices, along with supply chain disruptions because of the Russia-Ukraine Conflict, could affect the Indian automobile industry this year thereby affecting growth. He further informed that the Indian auto industry was aiming to register a 10 percent growth in 2022 at the beginning of the year but if the current situation prevails, it could have a significant impact on demand as the year progresses,
Chaba while interacting with PTI said, "The Indian (auto) market, before January and February, we were hoping that the 2022 calendar year could be the best year of all times and we could cross the peak which we had achieved in 2018. We were expecting 10 percent plus market growth this year. As of now, if you talk in April, the situation seems to be okay but frankly, I can see huge headwinds coming to demand." According to the Society of Indian Automobile Manufacturers (SIAM) data, the overall wholesale of vehicles across categories, including passenger vehicles, two-wheelers, and commercial vehicles, in 2018 stood at 2,67,58,787 units.