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Chip supply constraints led to ‘serious shortages’ in fourth quarter, says Bajaj Auto

By on April 27, 2022 0

According to Rakesh Sharma of Bajaj Auto, the vehicle sales of Bajaj Auto Ltd. fell as the industry continued to grapple with global supply chain constraints leading to “severe shortages” in the final quarter of FY22.

The shortage of semiconductors is a major problem facing the company, and the The impact of supply chain constraints extended into the first quarter of the current fiscal year “impacting 15-20% of the normal plan”, the Chetak maker’s chief executive told BloombergQuint in an interview. post-benefit press conference.

The two-wheeler maker had “single-source dependencies” that led to a supply shortage. However, the company is currently developing alternative sources of supply, Sharma said.

Bajaj Auto’s overall sales rose 8% from the previous fiscal year of FY22, helped by exports which jumped 22% to 25.06 lakh units. However, its domestic sales fell 6% to 18.01 lakh units.

In the fourth quarter, the company sold 3.89 lakh units in domestic markets, down 27% from a year earlier. Exports also fell 8% in the quarter.

“The three-wheeler industry continues to grow every quarter,” Sharma said. “The willingness of the Indian government to expand the footprint of CNG across the country is very helpful.”

This translated into a strong market share for the company, aided by auto finance, Sharma said.

“In retail, the company gained 1.8% market share.”