Hyundai India sales decline in September 2021 on the back of the global semi-conductor shortage
For September 2021, HMIL reports domestic sales at just over 33k units. A far cry from what we’ve come to expect during the festive season. YoY sales decline has surpassed a third, down from 50k units sold a year earlier. Volume decline stood at just over 17k units.
Exports grew by about a third, up at 12,704 units from 9,600 units in Sept ‘20. Total sales fell by 23.6 percent. Down at 45,791 units from about 60k units. MoM sales fell from 46,866 units. Sales decline is reported at 29.4 percent and volume decline at 13,779 units.
The industry has come face to fcae with low dispatches in September of this year due to supply constraints on the semi-conductor front. Everyone wants one but they’re hard to come by these days. This has resulted in car manufacturers being in dire need of the components in order to continue production at full capacity.
As per their ongoing efforts, manufacturers continue to work with vendors to best manage the situation, and avoid any added supply problems. Companies are continuously gauging the situation, and assessing different ways so their consumers don’t bear the brunt of delays.
That being the only logical outcome at present. with production lines slowed down deliberately on account of parts unavailability, those waiting for a new car may find their waiting period extended. With production limitations being a flavour of the day, lower sales during the festive season is bitter pill manufacturers need to swallow.
The auto industry has had to keep its brave face on for months at an end. Last year saw some sales recovery following an absolute lockdown that saw auto manufacturing and sales come to a standstill. The lull was followed by a deluge of orders during the next few months, which was marked with an unprecedentedly high demand.
However, this return to normal business targets has been thwarted by parts shortages. For some manufacturers this necessitated a halt/adjustment in production. This slowdown in output has been adversely affected since the semi-conductor supply chain isn’t up to scratch. As it stands, there are insufficient stocks to meet market demands.
Semi-conductors are vital
Production of semi-conductors is extremely vital for the production process of vehicles. Semi-conductors are the electronic hardware components that facilitate switching, amplification, and other electrical functions required in vehicular power management systems. Global vehicle production is expected to be revised downwards by due to this constraint. Vehicle demand is expected to be adversely affected during the same period.