Strong sales of cars in India despite limited chip availability


The lack of a good supply of semiconductors is hampering the growth of India's passenger vehicle car market. Would we become independent from the import-related stress market?



A surprise in the sale and shipment of cars came in April 2023. Since the last year, there has been limited availability of Cars and other vehicles in India. This is owing to the reduced outputs in the semiconductors. Semiconductors form a good chunk in cars' brains, also known as the processing units.
Despite all of these odds, there has been a 12.9% Year on Year increase in the sales of cars. A total of 3,31,747 passenger vehicles were sold in April 2023. If the issues of semiconductors get solved, the demand and supply margin will be reduced and people will be able to upgrade their cars with new ones.
The increase in popularity of Sports Utility Vehicles, or SUVs has less growth in the Indian car market since the 2010s. Indian companies have been trying to make semiconductors indigenously. If our companies are successful, then the import-dependent market will reduce.