OEMs resuming operations in phase manner
Indian automobile industry is facing headwinds like steep increase in commodity prices, semi-conductor shortage, and fear of a third Covid wave, said Kenichi Ayukawa, President of the Society of Indian Automobile Manufacturers (SIAM).
“In such uncertain environment, the Industry is working hard to maximize production and sales while ensuring safety of our people and customers,” Ayukawa added in a release on 14 July 2021.
“With ease in restrictions on COVID-19, OEMs have carefully resumed operations in a phased manner.”
“In Quarter-1 this year, Indian Automobile Industry came forward to support the Government in its fight against Covid second wave. Many OEMs shut down their manufacturing plants to make oxygen available for medical purposes.
“They also contributed towards augmenting oxygen supply to hospitals, supporting health care facilities and helping local communities. Due to various lockdowns, many dealers could not operate, leading to subdued sales,” said Ayukawa.
Commenting on the industry performance during April–June, SIAM Director General Rajesh Menon, said, “In Quarter-1 last year (FY 20-21), the Indian Automobile Industry had very less sales because of the nation-wide lockdown induced by the first wave of the pandemic. This year too, in Quarter-1 (FY 21-22), sales were subdued due to the impact of Covid second wave.”
Sales of all segments were lower in past several years, barring Q1 of FY 20-21. Passenger vehicle segment registered sales of 6.46 lakh vehicles in this quarter, which is lowest in past 7 years, barring Q1 of FY 20-21.
Sales of 1.06 lakh units for the Commercial Vehicle segment and 24.04 lakh units for the Two-Wheeler segment, were lowest in past 12 years, barring Q1 of FY 20-21. Three-wheeler segment was the worst-hit with sales of just about 24,000 units, which has been lowest in more than two decades, barring Q1 of FY 20-21.”
However, automobile exports have picked up, with 1,419,430 units shipped during the April-June 2021 quarter, up from 436,500 units exported in the same period of 2020-21 despite saw massive disruptions due to the COVID lockdowns across the country, hampering sales as well overseas shipments. #exports #manufacturing #investment #economy /fiinews.com
