Indian automakers expect better festive sales this year despite chip crisis
Indian automakers such as Maruti Suzuki, Toyota Kirloskar Motor and Mahindra and Mahindra expect sales to be better this festive season as compared to last year even despite the lingering chip shortage. The auto companies have been struggling to sustain production schedules due to global shortage of semiconductor chips.
The festive season began with Onam and will culminate with Diwali celebrations in November. The automakers have witnessed robust demand for their products thanks to the festive sentiments with most companies reporting a positive sales growth in August as compared to last year.
They are now looking to spruce up supplies to dealers so that they can serve customers better during the peak of festive period in October. "At the moment demand looks ok. It is slightly better than last year. If we look at the bookings, enquiries, retails, these are robust," Maruti Suzuki India (MSI) Senior Executive Director, Shashank Srivastava told PTI. He also highlighted the supply constraints being faced by the company.
(Also read | Indian automakers report sales growth in August riding on festive sentiments)
Though the company will try to build sufficient inventory to cater to peak demand around Navaratri, it will also depend on the semiconductor supply situation. The company had recently announced that its September production will get affected due to supply constraints.
Mahindra noted that after the opening up of the markets post the second wave of Covid-19, there has been a rebound in overall demand for vehicles. These signs indicate a good festive season with strong demand compared to last year. “Utility vehicles (UVs) will continue to dominate the space of festive demand contributing to almost half of the PV segment. We are committed to enhancing the festive season offerings," Veejay Nakra, Automotive Division CEO at Mahindra told PTI.
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Toyota Kirloskar Motor (TKM)'s Associate General Manager (AGM) - Sales and Strategic Marketing, V Wiseline Sigamani, said that demand has been gradually increasing. "We are making every effort to offer better services, digitalise our sales operations and reduce order to delivery lead time so they can get the vehicle at the right place and time, thereby enhancing customer delight," he told PTI.
(with inputs from PTI)