Indian Automobile Industry: Despite facing a severe semiconductor shortage, the Indian automobile industry demonstrated robust growth in the month of April. While the decline in the production of passenger vehicles (PVs) was attributed to the chip shortage, other segments managed to maintain positive momentum. However, two-wheeler exports experienced a year-on-year (YoY) decline of 36 percent, indicating the impact of the semiconductor shortage on this sector as well.

According to reports, the total domestic wholesale dispatches of PVs increased by 13 percent YoY, reaching 3,31,278 units in April, compared to 2,93,303 units during the same period last year. This growth is commendable considering the challenges posed by the global semiconductor supply crunch.

Utility Vehicles Lead Surge in Indian Auto Sales Despite Semiconductor Shortage

The sales growth in the PV segment was primarily driven by utility vehicles (UVs), which witnessed a remarkable YoY growth of 16.28 percent. In April, the sales of UVs reached an impressive figure of 1,48,005 units, compared to 1,27,282 units in the corresponding month last year. This surge in demand for UVs showcases Indian consumers’ preference for these versatile and practical vehicles.

Domestic passenger car sales also witnessed a significant YoY increase of 16.36 percent, with 1,25,758 units sold in April compared to the previous year. This surge in car sales indicates a positive sentiment among Indian buyers, despite the prevailing semiconductor shortage and associated production challenges.

Indian Automobile Industry
Indian Automobile Industry

Indian Automobile Industry Witnesses Strong Growth in April Despite Semiconductor Shortage

The semiconductor shortage, which has impacted industries worldwide, has caused disruptions in the automotive supply chain, leading to reduced production levels in several countries. The Indian automobile industry has also been affected, with PV production taking a hit due to the unavailability of semiconductors. However, the growth witnessed in April’s sales figures reflects the industry’s resilience and ability to adapt to challenging circumstances.

While the two-wheeler segment faced a decline in exports, with a YoY drop of 36 percent, it is important to note that the impact on the domestic market was not addressed in the provided information. Nevertheless, the overall growth in PV sales, particularly in the UV and passenger car segments, signifies a positive trajectory for the Indian automobile industry.

Growth Against All Odds: Indian Automobile Sector Thrives Despite Semiconductor Shortage

The industry stakeholders, including manufacturers and suppliers, are actively working to mitigate the impact of the semiconductor shortage. Efforts are underway to diversify supply chains, explore alternative sources of semiconductors, and optimize production processes to meet the growing demand and address the challenges posed by the global chip shortage.

Despite the semiconductor crisis, the Indian automobile industry has showcased resilience and sustained growth in key segments, indicating the industry’s ability to navigate challenging circumstances and cater to the evolving demands of consumers.


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