Chip crunch, pandemic, high costs drag Dec qtr auto sales to multi-year low

The auto industry body expects current quarter to be better but stops short of sharing any guidance owing to pandemic related uncertainties

Sales of automobiles across all segments in India, the world’s fifth-largest market, hit a multi-year low in the December quarter owing to pandemic-induced factors, which disrupted both supply and demand.

A persistent increase in raw material costs, coupled with safety and emission regulations, jacked up vehicle prices, particularly hitting those at the entry level of the market, Society of Indian Automobile Manufacturers (Siam) said on Friday.

The auto industry body expects the current quarter to be better but stopped short of sharing any guidance.

Sales or despatches to dealers across all the categories dropped to a little more than 1.2 million units in