Semiconductor shortage continues to plague Indian auto industry – Hyundai India reports sales slowdown at about a quarter in November 2021
The semiconductor shortage continues to be a clear and present disruptive force. Its effects are real and tangible, leaving manufacturers grappling with lower production levels. This of course is nowhere as constraining as 2019 when production had been brought to a standstill owing to Covid-19 lockdown.
At the time, production output had been halted in entirety. As the industry attempted a comeback, it has been left dealing with the effects in supply chain disruptions pertaining to a shortage of semiconductors.
Hyundai Sales Nov 2021
That said, sales contraction has been more real than ever before. Hyundai Motor India reports sales in November 2021 at 37k units. When compared with November 2021, volume loss stood at 11,799 units, down from 48,800 units. Sales decline stood at 24.18 percent. That’s a quarter lost in sales last month.
While sales numbers look bleak, they are in no way representative of demand. Hyundai enjoys a mighty presence in the Indian market. Their cars Venue, Creta, i20, i10 NIOS, Alcazar, Aura are in good demand.
MoM sales is flat having reported sales in October 2021 at 37,021 units. Speaking about Hyundai India Exports for Nov 2021 – Exports last month fell by 4.7 percent. Exports fell to 9.9k units, down from 10.4k units. Volume loss stood at about 500 units.
Hyundai acknowledges that November sales is ‘affected on account of the ongoing semiconductor shortage situation’. It goes without saying that manufacturers are doing all they can to increase production levels to peak, and mitigate the situation. However, there’s no clarity regrading what normal looks like from hereon, and when it might be a reality.
Semiconductor shortage situation
Having refocused on the UV segment, the auto manufacturer is on the right path to success. With projections of all nature and size foretelling growth in the wide-ranging UV segment in India, Hyundai has strategised to make available bestsellers in these segments. A majority of Hyundai’s current UV success is attributed to sales of Creta and Venue.
An immediate outcome of the semiconductor shortage means current bookings continue to swell but deliveries aren’t prompt. As such, it’s not surprising to see customers settle for delivery dates that extend to weeks later, and sometimes more than a few months.
However, the current conundrum isn’t unique to a single manufacturer but to the industry as a whole. Long story short, a booking today doesn’t translate to a delivery tomorrow. The mitigation process is also impacted to a small degree by booking cancellations on account of long delivery windows.