Passenger Vehicle Sales Grew 27% In 2021 Despite Chip Crisis & COVID Woes: Report

India's passenger vehicle segment made a comeback in 2021 by posting a growth of 27 per cent, despite limitations like global chip shortage and COVID-19 second wave. This demand in the PV segment was majorly driven by SUVs and new models. Interestingly, the PV industry also surpassed the 30 lakh-unit mark for only the third time in history, as reported by TOI. Despite several production constraints and delivery backlog, automakers reportedly despatched 30.82 lakh units to dealerships in CY2021 compared to 24.33 lakh units last year.

Also Read: Maruti Suzuki Sees 4% Decline In Sales As Chip Shortage Continues To Affect Production​

As reported by TOI, passenger vehicle sales surpassed the 30-lakh mark for the first time in 2017 when total sales stood at 32.3 lakh. The momentum continued for 2018, where total sales remained at 33.95 lakh units. However, the PV sales in 2019 slipped to 29.62 lakh units.

Maruti Suzuki India's total sales last month stood at 153,149 units

The country's leading auto manufacturer, Maruti Suzuki India, was severely impacted due to a semiconductor crunch that impacted production and sales in 2021. The carmaker sold 13.65 lakh units this year against 12.14 lakh in 2020. However, these numbers were significantly lower in 2018, when retailed 17.31 lakh units.

Shashank Srivastava, sales & marketing director at Maruti, said to TOI that companies have initiated steps to tackle the semiconductor shortage, though the situation remains fluid. "From a low production level which was at 40% of capacity, we could scale up to 83% by November, and to 87% by December. We are hopeful that this progress will be maintained as we move ahead. Demand too remains fluid. It's difficult to forecast. There are factors that still make the situation uncertain. These include the availability of semiconductors, the growth of the economy, and how the Covid situation pans out."

Also Read: Hyundai Drops To No. 3 As Sales Decline By 32 Per Cent​

Hyundai posted a 19 per cent growth in domestic numbers this year, which stood at 5.05 lakh units against 4.2 lakh units in 2020. The South Korean automaker achieved this despite key component supply constraints.

Hyundai registered a growth of 19.2% in CY2021 in the domestic market over last year's sales performance

Tarun Garg, Director - Sales, Marketing & Service, Hyundai Motor India, said, "With an excellent market response for our brands, HMI has registered a healthy growth of 19.2 per cent in CY2021 in the domestic market over last year's sales performance. We are grateful to all our customers for their trust and love for the brand Hyundai. We will continue to drive customer delight with the introduction of smart mobility solutions pegged on the tenets of intelligent technology, innovation and sustainability."

New models like the Thar and the XUV700 lead the charge for Mahindra & Mahindra 

New models have led the charge for the Utility Vehicle maker - Mahindra & Mahindra in 2020 and 2021. It includes the all-new Mahindra Thar and the XUV700. The automaker is struggling with bookings which have resulted in a long waiting period, lasting about a year for some variants.

Veejay Nakra, CEO of M&M's automotive division, said, "We have seen growth in business segments including Passenger Vehicles, Commercial Vehicles and International Operations, owing to continued strong demand across the product portfolio. The issues around semiconductor-related parts continue to be a challenge for the industry and remains a major focus area for us".

Source