India's September vehicle sales hit by chip shortage

NEW DELHI (Reuters) -Domestic car and sport-utility vehicle (SUV) sales in India fell 41% in September from a year earlier as a semiconductor crunch and high commodity prices exacerbated problems for automakers, an auto industry group said on Thursday.

Production was also lower by about 37%, the Society of Indian Automobile Manufacturers (SIAM) said.

"While on the one hand, we are seeing a revival in vehicle demand, on the other hand, shortage of semi-conductor chips is causing a major concern for the industry," said Kenichi Ayukawa, president of the SIAM.

The chip shortage has forced several companies to curtail production in the run-up to a month-long festive season in India, starting this month, during which people typically make big-ticket purchases, including vehicles.

The lower production has increased the waiting time for buyers, said Ayukawa, who is also managing director of Maruti Suzuki, India's biggest carmaker.

Total domestic passenger vehicle sales in September fell to 160,070 units from 272,027 units a year ago while sales of motorcycles and scooters fell to 1.5 million units from 1.8 million units over the same period, SIAM said.

(Additional reporting by Chandini Monnappa in Bengaluru; Editing by Ramakrishnan M., Robert Birsel)

By Aditi Shah