NEW DELHI: Passenger vehicle (PV) wholesales in India fell 6% to 2,62,984 units in February 2022 from 2,81,380 units sold in the same month last year, said the Society of Indian Automobile Manufacturers (SIAM) on Friday.
Sequentially, however, PV sales witnessed improvement as the same stood at 2,54,287 units in January 2022. The decline is attributed to supply-side challenges such as semiconductor shortage, higher logistics cost and rise in commodity prices.
Rajesh Menon, Director General, SIAM said, “Continuing supply-side challenges like Semiconductor shortages, increase in cost due to new regulations, higher commodity prices, higher logistics cost etc. have impacted overall sales in the auto industry. The industry is closely watching the possible impact of the ongoing conflict in Ukraine, as Global Supply Chains could come under stress,” he added.
According to auto industry executives, if the on-going Russia- Ukraine conflict worsens in the coming days, it may have a severe impact on the auto industry’s supply chain. Add to it, commodity prices have spiked due to Russia’s major presence in commodities such as Aluminum, Palladium, Platinum and Oil.