Hyundai India’s domestic sales fall by a third to 37k units in October 2021
For October 2021, Hyundai India reported sales of 37k units, down from 56,605 units. Volume declined 34.60 per cent to 19,584 units. MoM sales increased by 11.89 per cent from 33k units to less than 4k units.
Hyundai October 2021 Sales
The best selling Hyundai cars in India include the Creta, Venue and the new Alcazar SUV. Even their hatchbacks, the new i20 and the Grand i10 Nios have done well. Santro also helped in increasing the sales numbers.
Hyundai India exports declined by 46.6 per cent. Export volume declined to 6,535 units from 12,230 units. Total sales declined to 43,556 units, down 36.7 per cent from 68,835 units. The decline in sales is not due to low demand but due to shortage of parts.
The ongoing supply crunch has dented the demand for key semiconductor materials, which are in high demand. At the same time, margin pressures, structural changes in the industry and uncertainty are also weighing on the market sentiment as to when this shortfall will end. As a result of these downsides, semiconductor stocks have been trading soft this year, but still managed to make some ground. However, there is no clarity on how soon this shortfall will be addressed.
The tightening in semiconductor supply has led to an increase in the price of most semiconductor components. Additionally, the industry is witnessing lower-than-normal inventory levels which will continue to complicate the situation in future. Given the uncertainties, it’s hard to tell how long months will require manufacturers to re-adjust vehicle production to account for less.
The current situation has affected the availability of some key components. Manufacturers are carefully managing inventory to minimize any disruption to our customers’ high-quality product delivery. The slowdown in the global semiconductor market means that the impact on the near future will be more challenging for smaller companies.
To combat this, small-cap companies are leveraging emerging technologies to better protect themselves from disruptions caused by sudden changes in demand. Current disruption management points strongly at adapting to remain competitive. Despite the hurdles, manufacturers continue to increase operating efficiency to drive continued growth in revenue and earnings for the year.
With increasing production costs and increasing demand for semi-conductors, new approaches should be examined to make the most of the resources. So, despite reducing dependence on some aspects, the cost of production will continue to rise. Rising polymer prices and production costs have also continued to put pressure on the semiconductor supply chain.
As the industry continues to grow, opportunities to manage these challenges will need to be re-evaluated. Alternatives such as other material, equipment and process design can make a big difference in reducing costs and keeping profits attractive to manufacturers.