Tuesday, August 16, 2022
By Kamal Swami
Continuity Of Semiconductor Supply Improves The Production
The production activities of vehicle manufacturers are gaining momentum with an increase in the supply of semiconductor chips. According to recent reports, there is an increase of 11% in the number of vehicles dispatched by vehicle manufacturers to their respective dealers. In a statement released by the sources of SIMA, this improvement will help the manufacturers to boost their production before the arrival of the festive season.
In 2021 2,64,442 passenger vehicles were sold in the country, whereas during the same month this year, this number increased to 2,93,865. The sales of passenger cars also recorded a growth of 10% compared to sales last year during the same months. In July 2021, 1,30,080 units of passenger cars were sold in the entire country, whereas in July 2022, this number increased to 1,43,522.
The wholesales of utility vehicles increased to 1,37,104 in July 2022 from 1,24,057 wholesales in July 2021. The sales of vans increased from 10,305 units in July 2021 to 13,239 units in July 2022. The total sales of two-wheelers also increased from 12,60,140 units in July 2021 to 13,81,303 units in July 2022. Thus recording a growth of 10% from the last year.
According to Rajesh Menon, the Director General, Society of Indian Automobile Manufacturers (SIMA), despite an increase in wholesales of passenger vehicles, the sales of entry-level passenger cars, three-wheelers, and two-wheelers have witnessed growth. In his words, "Sales of two-wheelers in July 2022 are still below July 2016 numbers and sales of three-wheelers are still below the July 2006 numbers. The third hike in a repo rate in a row, to rein in high inflation, will make auto loans costlier, making it more difficult for entry-level vehicles to recover”. Moving ahead, he also appreciated the government’s initiative to supply extra domestic gas to the CNG market.
"This would significantly bring down the input cost of gas companies. We hope that in line with the Government's intent, the gas companies would pass on the entire benefit to the end consumers by reducing retail CNG prices," Menon added.
