Semiconductor Scarcity Automobile shipments fall 11%
Automobile wholesales in India fell 11% year on year in August, SIAM reported on Friday, as the semiconductor scarcity impacted production processes throughout the industry. Total wholesales, excluding commercial cars, fell to 15,86,873 units last month, down from 17,90,115 units in August 2020. According to the Society of Indian Automobile Manufacturers’ (SIAM) most recent data, two-wheeler dispatches from OEMs to dealers decreased last month, while passenger car and three-wheeler wholesales increased over August 2020.
Two-wheeler dispatches from OEMs to dealerships decreased 15% in August to 13,31,436 units, down from 15,59,665 units a year ago. Motorcycle sales totaled 8,25,849 units last month, down 20% from 10,32,476 units in August 2020. Similarly, scooter dispatches fell 1% last month to 4,51,967 units from 4,56,848 a year ago.
Total passenger vehicle sales from OEMs to dealerships climbed by 7% to 2,32,224 units in August, up from 2,15,916 units in the same month previous year. Wholesale three-wheeler sales jumped 60% to 23,210 units last month, up from 14,534 units a year before. SIAM Director General Rajesh Menon commented on the August sales, stating that the Indian automobile industry is withering under pressure due to supply chain constraints.
“The worldwide semiconductor scarcity continues, and it is now having a significant influence on auto sector output,” he continued. Globally, semiconductor use in the automotive industry has increased in recent years, as technological advancements and new models incorporate an increasing number of electronic features such as Bluetooth connectivity and driver assistance, navigation, and hybrid-electric systems in addition to the engine control unit.
However, the automotive industry accounts for approximately 10% of total semiconductor demand, with the remainder coming from electronic appliances and gadgets such as mobile phones and laptops.
Menon stated that, in addition to the chip scarcity, high commodity costs remained a concern, affecting the auto industry’s cost structures.
“In the face of such formidable headwinds, SIAM members are battling to meet customer demand and expectations while also protecting the safety of their people along the value chain,” he added.
Looking at cumulative sales from April to August 2021, Menon said that the passenger vehicle category is still behind the 2016-17 level, the two-wheeler segment is behind the 2011-12 level, and the three-wheeler segment is years behind.
Maruti Suzuki India (MSI), the country’s largest carmaker, shipped 1,03,187 passenger vehicles this month, down 9 percent from 1,13,033 in August 2020. Hyundai Motor India, on the other hand, sold 46,866 cars last month, up from 45,809 in August 2020.
Home Loan Interest is All-Time Low Now. Best Time to Buy a House?
With the festive season approaching, banks across India have begun offering promotions and concessions. One such occurrence that has been circulating recently is the fact that house loan interest rates have reached an all-time low across the country. Kotak Mahindra Bank was a recent addition to the list of financial institutions who slashed their rates. The lender reduced its interest rate by 15 basis points to 6.50 percent per annum. This makes it the country’s lowest interest rate on house loans. The bank announced the rate reductions across all credit levels, both new and balance transfer.
Bank interest rates have fallen sharply in recent years, ever since the Reserve Bank of India (RBI) slashed repo rates to boost market liquidity in response to the severe economic effects of the Covid-19 outbreak.
Home Loan Interest Rates in September 2021 compiled from bank websites and aggregator sites)
State Bank of India – 6.70 per cent per annum
Bank of Baroda – 6.75 per cent per annum
Punjab National Bank – 6.80 per cent per annum
Union Bank of India – 6.80 per cent per annum
Central Bank of India – 6.85 per cent per annum
Kotak Mahindra Bank – 6.50 per cent per annum
Punjab & Sind Bank – 6.65 per cent per annum
LIC Housing Finance – 6.66 per cent per annum
Tata Capital Housing Finance – 6.70 per cent per annum
HDFC Bank – 6.75 per cent per annum
ICICI Bank – 6.75 per cent per annum
Bajaj Finserv – 6.75 per cent per annum
Bank of India – 6.85 per cent per annum
IDFC First Bank – 6.90 per cent per annum
Axis Bank – 6.90 per cent per annum
Canara Bank – 6.90 per cent per annum
UCO Bank – 6.90 per cent per annum
HSBC Bank – 6.90 per cent per annum
Indian Overseas Bank – 7.05 per cent per annum
Karur Vysya Bank – 7.15 per cent per annum
J&K Bank – 7.20 per cent per annum
South Indian Bank – 7.25 per cent per annum
PNB Housing Finance – 7.35 per cent per annum
Standard Chartered Bank – 7.49 per cent per annum
Karnataka Bank – 7.50 per cent per annum
Federal Bank – 7.65 per cent per annum
Fullerton Grihashakti – 7.99 per cent per annum
IIFL – 8.20 per cent per annum
DHFL – 8.75 per cent per annum
Shriram Housing Finance – 8.90 per cent per annum
YES Bank – 8.95 per cent per annum
Aditya Birla Housing Finance Ltd. – 9.00 per cent per annum
Industrial production grows 11.5% in July
According to official figures issued on Friday, India’s industrial production increased 11.5 percent in July as the effect of the low base receded.
According to the National Statistical Office’s (NSO) Index of Industrial Production (IIP) figures, industrial production increased 10.5 percent in July 2021.
July saw a 19.5% increase in mining output and an 11.1 percent increase in power generation.
Primary goods output climbed by 12.4%, while capital goods output increased by 29.5%. Intermediate goods output increased by 14.1 percent, while infrastructure or construction goods production increased by 11.6 percent.
Consumer durables production climbed by 20.2 percent in July, while consumer non-durables production fell by 1.8 percent.
In July 2020, the IIP contracted by 10.5 percent. Between April and July of this year, the IIP increased by 34.1 percent. In the same period last year, it was a decrease of 29.3 percent.
Since March last year, when industrial production declined 18.7 percent as a result of the coronavirus outbreak, it has been impacted. It contracted by 57.3 percent in April 2020, owing to a fall in economic activity in the aftermath of the coronavirus lockdown.
Along with the fast estimates of IIP for July 2021, the indices for June 2021 and April 2021 have been revised in light of fresh data received from the source agencies, NSO stated.
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Smrutirekha Bhoi