Maruti Suzuki reports 32% decline in October wholesale due to chip shortage

India’s largest carmaker on Monday reported that its sales domestic wholesale in October declined by 32% despite growing consumer demand as a shortage of semiconductors limited production.

The company supplied 112,788 cars to its dealers during the month compared to 166,825 units during October last year. Supplies to Toyota Kirloskar Motors for re-badged products Glanza and Urban Cruiser came in at 4,225 units, down 30% year-on-year.

However, the impact of the chip shortage was lower than estimated at the beginning of the month, the company said.

“While the shortage of electronic components continued to affect the production of vehicles during the month, the company took all possible measures to minimise the impact. Accordingly, the Company sold more vehicles than the sales volume expected at the start of the month,” Maruti Suzuki said in a press statement.

The stock of Maruti Suzuki was trading 1.02% higher at Rs 7,560 on the BSE as of 12:45 pm Monday. The benchmark Sensex was up 0.54%.

The shortage of semiconductors meant that carmakers in India have not been able to capitalise on the peak festive demand for new vehicles. Waiting periods on popular models now range around 5-6 months. In extreme cases, customers may have to wait up to a year to get their new car.

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