Auto companies ring up higher net sales, profits in March quarter

Semiconductor shortage and high commodity prices dent margins

Aggregate net sales and net profits of auto companies rose 12 per cent and 15 per cent, respectively, year-on-year in the quarter-ended March even as the chip shortage, a steep increase in raw material prices, and the demand slowdown facing a few segments have crimped margins.

Automakers expect margins to remain under pressure because the chip shortage is unlikely to be resolved anytime soon and may prevent them from leveraging scale.
 

A persistent inflationary trend will also continue to mount pressure.

Even as strong demand in the passenger vehicle market may help the industry cross 3.4 million units (last seen FY19) in