Carmakers in India detailed a sharp growth in yearly sales for the financial year 2022 on Friday, however, cautioned of future dangers from worldwide supply chain disturbances.
Maruti Suzuki,the biggest carmaker in India, reported that its sales rose by 13 percent in the fiscal year ending March 31 to 1.65 million units, which is the first time growth in the last two years. However, the company went on to warn that “the supply situation of the electronic parts remain sun certain”.
SUPPLY CHAIN
This situation could lead to “some negative effects” on the production volume in the present financial year, Maruti said in a statement. Maruti, which currently sells one in every two cars in India, is majority-owned by Suzuki Motor Corporation of Japan.
Automakers all around the world have been compelled to make sharp manufacturing cuts in the previous year as supply network interruptions and growingdemands for consumer electronics have prompted an intense lack of semiconductors. This has brought about significant delays in semiconductor supply to automakers, resulting in extended times in queues for car purchasers.
Meanwhile, the Russian invasion of Ukraine is supposed to make the issue even worse as the two nations supply raw materials that is needed to make semiconductors, Indian rating organization ICRA said.
“The effect of the crisisin the disguise of higher fuel prices and commodity costs likewise presents hugethreats to (vehicle) demands, in the event that the war becomes long-drawnand remains stretched,” ICRA said.
TATA Motors, which is additionally India’s biggest electric carmaker, detailed its most noteworthy ever yearly sales of passenger vehicles, up 67 percent to 370,372 units from the last year. Its electric vehicle salesshot up by almost four times to 19,000 units, the organization said in a statement, even after “two waves of coronavirus induced slowdown, semi-conductor crisis and a sharp elevation in the commodity costs”.
“The semi-conductor crisis situationremains uncharted in the coming times. We will continue to keep an eye on the situation evolving,” said Shailesh Chandra, the managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
READ ALSO :Ozone might be warming the planet more than we understand
