Supply chain disruptions due to Ukraine war coupled with increase in semiconductor prices will determine the direction of India’s auto industry this year and affect growth. This information was given by Rajiv Chhaba, Chairman and Managing Director, MG Motor India. Chhaba said that the domestic automobile industry was expected to grow by more than 10 per cent in 2022, but with the passage of time, if the current situation persists, it may have an impact on demand.
He said, “Before January, February, the Indian auto industry was expecting 2022 to be the best year and we will also exceed the growth achieved in 2018. We expected the market to grow at over 10 per cent this year. If you talk about April, things are looking fine but I am able to feel the unfavorable environment for demand.
According to SIAM, the total sales of different categories of vehicles in 2018 was 2,67,58,787 units, while the total number of vehicles shipped to dealers in 2021 was 1,84,92,506 units as against 1,74,70,854 units in 2020. six percent higher.
Explaining the reason behind this estimate, Chhaba said, “The cost is increasing very fast due to the increase in the prices of metals. Chip prices also went up. There is a lot of trouble in the supply chain due to the Ukraine crisis and other problems. It will also have an impact on the auto industry, going forward the demand may come down.” He said that its impact is not visible in the market right now but such pressures, which are basically global issues, if they persist. It will definitely have an impact.