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India’s auto production rose to 2.09mn units in July, up by 22pc from a year ago, according to the Society of Indian Automobile Manufacturers (SIAM) data.


The Indian automobile industry continues to witness challenges including global semiconductor short supply and a steep rise in commodity prices. The auto industry is trying to mitigate the supply chain challenges while handling the COVID-19 second-wave situation and preparing to brace the possibility of a third wave. Automakers are trying to maximize production and sales, stated SIAM in its report.



Total production in July increased by 22pc to 2.09mn units, of which passenger vehicles rose by 53pc to 333,369 units from July 2020. Three-wheeler production rose by 89pc to 63,164 units in July, while two-wheeler production increased by 16pc to 1.2mn vehicles in the same month from a year ago. 



Total sales in July rose by 4pc to 1.53mn units, and exports rose by 102pc to 474,940 vehicles from a year ago. Passenger vehicles sales were at 264,442 units, 45pc higher than a year ago. Three-wheelers sales jumped 41pc to 17,888 units, however, sales of two-wheelers fell by 2pc to 1.25mn units in July compared to a year ago. 


Sales in July 2021 are still 13pc lower than pre-pandemic levels. 


SIAM recently voiced concerns against the reduction of import duty for Tesla electric vehicles stating that it will make local production unviable. India currently charges 110pc duty on imported electric cars which cost above $40,000. Tesla requested import duty to be reduced to 40pc for imported EVs, which would leave no incentives for domestic companies setting up new EV assembly units, noted SIAM. This concession would go against the motto of being self-reliant. 

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