The Indian automobile industry is expected to close the current fiscal year of 2023-24 with a growth of 6-9 percent, though it continues to face challenges of global supply chain disruptions and rising ownership costs for buyers, Indian rating agency ICRA said in an industry report on Monday, January 29.
Despite operating at high-capacity levels, original equipment manufacturers are struggling with semiconductor chip shortages, impacting their production capacity utilizations. Maruti Suzuki India (MSIL) is persistently facing a shortage of electronic components, constraining its production to a certain extent, the report said.
In December 2023, the domestic wholesale volumes of the automobile industry demonstrated resilience, maintaining strength at 290,000 units, posting a year-on-year growth of approximately four percent, ICRA said. While this signifies a positive trend, sales declined as original equipment manufacturers (OEMs) scaled back production towards the end of the calendar year, it added.