Automobile sales in the country increased by 20.3% to 2,12,04,162 units in April 2022 to March 2023 period, as against 1,76,17,606 units in the same period last year, on the back of strong demand for passenger vehicles, according to the data provided by the Society of Indian Automobile Manufacturers (SIAM). Of this, passenger vehicle sales were the highest, witnessing a surge of 26.7% to 38,90,114 units in FY23, as against 30,69,523 units in the same period last year. Amongst passenger vehicles, the sales of Maruti Suzuki, the country’s largest automobile manufacturer, were the highest at 16,06,870 units, followed by Hyundai and Tata Motors at 5,67,546 units and 5,44,391 units, respectively.
The sales of commercial vehicles witnessed a 34.3% growth in sales to 9,62,468 units in FY23 as against 7,16,566 units in the same period last year. This was followed by sales of two-wheelers—which is seen as an indicator for rural demand— 1,58,62,087 units, a growth of 16.8% as against 1,35,70,008 units in FY22.
The three-wheeler sales stood at 4,88,768 units during the year under review as against 2,61,385 units in the same period last year.
"With the growth in overall automobile domestic sales of 20% in 2022-23, the industry recorded the highest passenger vehicle sales with an annual growth of 27%. Commercial Vehicles and Three-Wheelers posted growth of 34% and 87% respectively, driven by higher off-take of Passenger Carriers. The Two-wheelers segment grew by a moderate 17%, after witnessing de growth for the previous three consecutive years. These segments are yet to reach the pre-pandemic levels," says Rajesh Menon, Director General, SIAM.
In the January to March period of FY23, the total automobile sales accounted for 50,55,755 units, with an upsurge of 8.8% as against the 46,43,730 units sold in the same period last year. Of this, sales of passenger vehicles surged by 10.6% to 10,18,355 units as against 9,20,685 units sold in the same period last year. The commercial vehicle sales stood at 2,78,878 units during the period under review, as against 2,49,806 units in the same period last year. The two-wheeler and three-wheelers sales stood at 36,04,593 units and 1,53,645 units, respectively in Q4 of FY23.
Notably, electric vehicle sales stood at 11,52,021 units in FY22-23, the data by the Society of Manufacturers of Electric Vehicles (SMEV), showed earlier this week. Amongst the total EV sales, electric two-wheelers sales stood the highest at 62%. the electric three-wheeler sales stood at 4,01,841 units, thus accounting for 34% of the total EV sales. Electric four-wheeler sales accounted for 4% of the total sales at 47,217 units, whereas the sales of electric buses stood at 1,904 units.
"2022-23 has been a year of consolidation, post-covid. The year started again with supply chain disruptions from the Ukraine conflict. However, with efficient management of supply chains and better availability of commodities especially for electronics items, prices have moderated over the year, though it remains a concern. The passenger vehicle segment posted the highest-ever domestic sales surpassing the previous peak in 2018-19. Commercial vehicles posted the second-highest domestic sales and are close to the previous peak of 2018-19. Inspite of good growth in domestic sales in three-wheelers, they are still below the 2010-11 levels and the Two-wheelers domestic sales are still below the 2014-15 levels," says Vinod Aggarwal, President, SIAM.
"Favourable Policy initiatives ranging from the impact of new PLI Schemes, encouraging announcements in Budget, forward-looking Logistic & Foreign Trade Polices and recently announced Gas pricing Guidelines would go a long way in supporting the growth of the Industry," he adds.
Last month, CareEdge Ratings forecasted domestic auto sales to grow 7% to 9% in FY24 owing to robust demand supported by various government initiatives for rural and urban development.