Amid shortage of semiconductors and shipping containers, the Indian auto sector is also reeling under high prices of steel, the Society of Indian Automobile Manufacturers (Siam) said while releasing auto production and sales figures for December 2020. HRC prices were up by 15,000-17,000/mt ($205-233/mt) in December from July levels.
HRC prices are around Rs54,000-54,500/mt ex-works Delhi according to Davis Index data. India’s primary steel mills have announced a hike in steel prices for January too by Rs1,500-3,000/mt for flat steel for January deliveries, stated sources of Davis Index. Flat steel is also used by auto manufacturers.
The high prices of steel is affecting the sector at a time when the industry is trying to emerge from the negative consequences of the COVID-19 pandemic, Siam noted., while the industry is trying to emerge from the negative consequences of the pandemic. Siam said that prices of logistics and other raw material have also zoomed. Shortage of semiconductors has now become a major cause of concern for not only Indian automakers but also globally.
Production in Dec 2020
Total production of passenger vehicles rose to 1.90mn units in December, up 9pc from the previous year levels. Production from April-December for passenger vehicles was at 15mn units, down 25pc from the previous year period.
Auto sales in Dec
Domestic sales were recorded at 252,998 units in December, up 13.59pc from the year prior, while three-wheeler sales has fallen by 58pc. Two-wheeler sales maintained its uptrend, increasing 7.42pc from the previous year levels in December.
December was a strong month for passenger vehicles sales too, which grew by 13pc compared to 2019, which was a low base, stated Siam.
Q3 FY21 sales
In the December quarter, passenger vehicle sales increased by 14.44pc to around 0.8mn units while two-wheeler sales was up 13.37pc to 4.7mn units from the previous year, according to Siam data. Commercial vehicles sales in the Oct-Dec period dipped 1.12pc to 193,034 units compared to the year prior.
Passenger vehicle sales in April-December period was down 16pc to 1.77mn units while commercial vehicle sales was down 37pc to 358,203 units from 2019. Three-wheeler sales slipped 74.25pc and two-wheeler sales was down 22pc in April-December, compared to same period prior-year.
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