Aditi Shah

NEW DELHI (Reuters] – Indian carmakers reported a strong increase in their annual sales in fiscal 2022, on Friday. But they cautioned about future disruptions to global supply chains.

Maruti Suzuki (India’s largest carmaker) reported that sales increased 13% to 1.65 Million units in its fiscal year ending March 31, up from 1.3 million units in 2012. This is the highest growth in 2 years. However, the company cautioned that electronic component supply is still unpredictable.

Maruti stated that this might “have some impact” on production in the current fiscal. Maruti is India’s largest car seller, selling one out of every two vehicles. The majority ownership in Maruti comes from Japan’s Suzuki Motor Corp.

Global automakers have had to cut production in recent years due to severe shortages of semiconductors. The result has been long waits for car buyers.

According to ICRA, the Indian rating agency ICRA, Russia’s incursion in Ukraine will only make matters worse. Both countries provide raw material for making semiconductors.

ICRA reported that “the impact of the crises in the form higher fuel and commodity prices also poses risk to (automobile demand prospects), in the event it materializes into a long-drawn out war.”

Tata Motors India’s most prominent electric carmaker, (NYSE:), reported it had the largest ever year-end passenger vehicle sales, increasing 67% from last year to 370,372 units. The company released a statement saying that electric vehicle sales rose nearly four-fold to around 19,000 units despite “two waves in Covid, semiconductor crisis, and steep rises in commodity prices”.

“Going forward, semi-conductor situation remains uncertain. “We will continue to watch the changing situation closely,” Shailesh Chaudra, Tata Motors Passenger Vehicles managing director and Tata Passenger Electric Mobility managing director said.