Home Business Automotive gross sales rise however automakers warn of provide chain disruptions

Automotive gross sales rise however automakers warn of provide chain disruptions

Automotive gross sales rise however automakers warn of provide chain disruptions

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NEW DELHI: Carmakers in India reported a pointy rise in annual gross sales for the fiscal yr 2022 on Friday, however warned of future dangers from international provide chain disruptions.
Maruti Suzuki, India’s greatest carmaker, stated gross sales rose 13% within the fiscal yr ended March 31 to 1.65 million items, rising for the primary time in two years. However the firm warned that “the provision scenario of digital parts continues to be unpredictable”.
This might need “some influence” on the manufacturing quantity within the present fiscal yr, Maruti stated in a press release. Maruti, which sells one in each two automobiles in India, is majority owned by Japan’s Suzuki Motor Corp.
Automakers globally have been pressured to make sharp manufacturing cuts over the previous yr as provide chain disruptions and booming demand for shopper electronics have led to an acute scarcity of semiconductors. This has resulted in lengthy wait instances for automobile patrons.
Now, Russia’s invasion of Ukraine is anticipated to worsen the issue as each nations provide uncooked supplies used to fabricate semiconductors, Indian rankings company ICRA stated.
“The influence of the disaster within the type of increased gas and commodity costs additionally poses a threat to (car) demand prospects, in case it materialises into an extended drawn out battle,” ICRA stated.
Tata Motors, which can be India’s largest electrical carmaker, reported its highest ever annual gross sales of passenger automobiles, up 67% to 370,372 items from a yr in the past. Its electrical car sales grew almost 4 instances to 19,000, the corporate stated in a press release, regardless of “two waves of Covid, semi-conductor disaster and steep improve in commodity costs”.
“Going ahead, semi-conductor scenario stays unsure. We’ll proceed to watch the evolving scenario intently,” stated Shailesh Chandra, managing director, Tata Motors Passenger Automobiles and Tata Passenger Electrical Mobility.

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