According to a report by India Ratings, the five for every cent sequential maximize in domestic automobile revenue volumes (excluding industrial cars (CV)) in Oct 2021 was driven by a desire recovery in passenger cars (PVs) and secure two-wheeler (2W) desire, aided by the festive time, and decrease in every day Covid circumstances, the resumption of actual physical attendance at academic institutions and workplaces, and ongoing consumer preference for individual mobility.
Car revenue worst in 10 several years, but consumers want leading-close trims
However, the advancement was constrained by an maximize in car or truck charges, thanks to improved raw materials charges, and lower generation degrees on account of source chain challenges, especially the lack of semiconductor chips. The in general generation and revenue volumes reduced by 22 for every cent year-on-year and 21 for every cent year-on-year, respectively, in Oct 2021.
Chip lack impact on PV generation
Inspite of the festive time, retail revenue for PVs and 2Ws fell by eleven for every cent YoY and six for every cent YoY owing to semiconductor lack in PVs and very low desire for entry-amount 2W, respectively 3W and CV volumes improved by 74 for every cent and 26 for every cent, respectively. The field ongoing to witness sequential advancement in Oct 2021, however it was moderated by lower generation degrees thanks to source chain problems and very low consumer desire.
Car or truck revenue skid again in Oct thanks to chip lack CV revenue up
India Ratings expects the semiconductor crisis to proceed to impact PV generation volumes in November 2021. 2W volumes could keep on being moderate owing to very low consumer desire in the entry-amount section.