NEW DELHI: Led by SUVs and new types, the passenger autos field staged a spirited comeback in 2021 even with challenges of semiconductor scarcity and a fatal next wave of the coronavirus, as revenue grew 27% and crossed the psychological thirty lakh-device mark for only the third time in historical past.
Irrespective of extreme production constraints and a long shipping backlog (approximated at 7 lakh units), motor vehicle businesses despatched thirty.eighty two lakh units to dealerships in calendar year 2021, from 24.33 lakh units in 2020. The price of growth was sturdy owing to a reduced base as 2020 was the first year to have been impacted by the pandemic major to a period of time of great uncertainty.
Passenger autos revenue experienced crossed the thirty-lakh mark for the first time in 2017 where total revenue stood at 32.3 lakh units. In 2018, the field experienced shut at 33.ninety five lakh units, before slipping in 2019 to 29.62 lakh units.
For Maruti Suzuki, the country’s major carmaker which was also impacted severely by the semiconductor crunch, revenue stood at thirteen.65 lakh units in 2021, from 12.fourteen lakh units in 2020. Nevertheless, this was significantly quick of the 17.31 lakh units it experienced bought in 2018.
Maruti’s rival Hyundai, nevertheless, reported a 19% growth in its 2021 domestic quantities at five lakh units from 4.2 lakh units in 2020. The enterprise has also been hit by the semiconductor scarcity with the shipping backlog of autos these as Creta and Location SUVs at above one lakh units.
Shashank Srivastava, revenue & marketing director at Maruti, mentioned businesses have initiated steps to deal with the semiconductor scarcity, while the situation remains fluid. “From a reduced production degree which was at forty% of potential, we could scale up to 83% by November, and to 87% by December. We are hopeful that this development will be managed as we shift in advance,” Srivastava informed TOI.
Nevertheless, he extra that desire way too remains fluid. “It’s hard to forecast. There are variables which even now make the situation uncertain. These consist of availability of semiconductors, the growth of the financial system, and how the Covid situation pans out,” he mentioned.
The field is also grappling with large input expenditures, which has noticed selling prices of autos go up above the earlier few months. Srivastava mentioned a new spherical of rate hikes will happen in the following few days.
New types also led to the demand in 2020, and these included autos these as the XUV7OO and the Thar for Mahindra & Mahindra. The enterprise is grappling with a deluge of bookings, which has noticed a waiting list that runs into well above a year for some variants. “The problems all over semiconductor-relevant sections carry on to be a obstacle for the field and is a important focus place for us,” mentioned Veejay Nakra, CEO of M&M’s automotive division.