Domestic auto sales fall in April on supply-side constraints, continued weak demand: Ind-Ra
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Credit ratings agency, India Ratings and Research (Ind-Ra) in its latest report has said that the 5% month-on-month (mom) decline in the domestic auto sales volumes (excluding CVs) in April 2022 was due to the fall in passenger vehicles (PV) and two-wheeler (2W) volumes, owing to supply-side constraints and a continued weak demand, respectively.
According to the report, there was also decline in production volumes, fell 4% mom in April 2022, although it was stable over year-on-year (yoy) basis. Exports fell 6% yoy against a higher base in April 2021.
Ind-Ra further noted that after recording four months of consecutive sequential growth, PV domestic sales fell 10% mom in April 2022, on account of decreased production levels (down 6% mom) due to the continuing semi-conductor chips shortage, which was also aggravated by the ongoing Russia-Ukraine war.
Besides, it said that the decline in the utility vehicle (UV) segment (down 4% mom) was lower than passenger cars (down 18% mom) as original equipment manufacturers continued to prioritise the production of higher-margin UVs over passenger cars, amid the shortage of semi-conductors.
