Automakers ramp up chip supply, July shipments set record

India’s passenger car industry is set to post its best-ever monthly shipments from factories in July, as improved chip supplies help them speed up deliveries of cars and SUVs to some 700,000 waiting customers. According to several executives and industry experts, passenger car shipments in July are estimated at 350,000 units, valued at around Rs 25,000 crore.

This number is remarkably high for what is usually a lean month. The previous peak of 334,000 units was recorded in October 2020. Over the past five years, automakers have billed between 200,000 and 299,000 units in July, with the highest in 2017. The supply in the Indian car market was not able to supply for almost a year. Increasing demand for personal mobility, creating a large backlog. Car manufacturers were forced to reduce their production due to the shortage of semiconductors. As chip supply improves, these companies are now ramping up production.

Shashank Srivastava, Senior Executive at Market

said shipments this month are likely to be among the highest seen in the industry, although retail sales may not be as high.

“Shipments cannot be a reflection of actual demand and this has been the case for the last year or so in terms of supply constraints. In July, most automakers are clearing pending bookings,” he said without disclosing. Any number “While new launches continue to drive more bookings, older models are seeing some softening due to macroeconomic parameters of interest rates, inflation, fuel prices etc. In the case of Maruti, our position is due to two SUVs. Newly reinforced.” he added.

India’s top five automakers are expected to contribute 80-83 percent to the total industry volume for July 2022, with the largest automaker’s share estimated at 41-43 percent. In 2022, this is the fourth month that factories have shipped more than 300,000 units. The average volume in the last year was 277,454 units.

So far in FY23, average wholesale numbers are around 314,000 units per month, and if this trend continues, total vehicle volumes will reach 3.7 million units this year – a 24% increase over 2021. Light car production in India S&P Global said it is on track to surpass its previous peak in 2022 due to sustained demand.

Gaurav Vangaal, deputy director of light vehicle production forecasting at S&P Global Mobility, said that as semiconductor supply improves, the consultancy has raised its market growth forecast for 2022 from 13 percent to 17 to 20 percent. A strong backlog in the domestic market and rising export numbers allowed India to maintain its strong numbers. The first half of 2022 showed a growth of 3% compared to the first half of 2018 and we expect 2022 to be the best year for Indian light car production. ” he added.

Among the major light car manufacturing countries, India is the only country that has seen double-digit growth for consecutive years.

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