MG Motor India on Friday reported 28 per cent increase in retail sales at 3,241 units in September 2021 despite facing production challenges due to semiconductor shortage.

The company had retailed 2,537 units in the same month last year, MG Motor India said in a statement.

In September, the company's electric SUV ZS EV witnessed higher demand 600-plus bookings, it added.

Commenting on the sales performance, MG Motor India Director-Sales Rakesh Sidana said, "Our production has reduced by almost one-third due to chip shortage. We expect this challenge to continue for the next few months."

However, he said, "Given the high number of bookings, we are trying our best to address the challenge and bring down the waiting period down to three months."

With the festival season around, MG Motor India said it is getting ready to launch its mid-size SUV, MG Astor later this month.