Domestic PV sales see record jump in Sept with onset of festival season

The sales figures released by the top nine carmakers saw a jump of 89.6 per cent to 306,211 units

Domestic passenger vehicle (PV) sales of top carmakers reached record highs in September on the back of new models, increased availability of semiconductor chips and the onset of the festival season.

The sales figures released by the top nine carmakers – excluding Mahindra and Mahindra – saw a jump of 89.6 per cent to 306,211 units. (see table 1) Auto companies count wholesales, units dispatched to dealers, as sales.

Domestic sales of India's largest carmaker Maruti Suzuki increased from just 63,111 units in September 2021 to 148,380 units in September 2022. Shashank Srivastava, executive director of sales at Maruti Suzuki, said at a virtual press conference that the company's market share has increased in September 2022 to 42 per cent, which is 7.8 per cent more than in September 2021.

"In September last year, it was quite low as we were having problems with semiconductor (chip) supply issues," he noted. The executive director said that while the chip shortage issue had been resolved to about 95 per cent, it would be difficult to say when it can be resolved entirely.

He said the rising repo rates would have a negative effect on the auto industry, but its effects are yet to be felt by the auto companies as the retail rates have not yet been proportionally increased by lenders. He added that banks such as State Bank of India, Bank of Baroda and ICICI Bank had decreased their retail rates amid the festival season.

Hyundai said its domestic sales increased by 50.2 per cent to 49,700 units in September this year due to the ongoing festival season and the resilience shown by the Indian economy amid the global turmoil.

"All three of the company's new launches- Hyundai Venue, Venue N Line and Tucson in the SUV space, have received unprecedented customer response," said Tarun Garg, director of sales, marketing & service, Hyundai Motor India. Around 50 per cent of the sales of the company come from the SUV segment.

Tata Motors' achieved its highest ever domestic monthly sales of PV this September when the company dispatched 47,654 units -- 85 per cent more than in the same month last year.

Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles, said on Saturday that the PV industry witnessed strong demand during Q2 of FY23, fuelled by the festival season and new launches.

Chandra said that in the future, the company expects the festival season to witness strong retail on the back of improving the supply of vehicles.

Like Tata Motors, Kia India clocked its record monthly domestic PV sales in September at 25,857 units, marking a jump of 79 per cent. The Korean carmaker said it surpassed its 2021 domestic sales in the first nine months of 2022.

Toyota Kirloskar Motor (TKM) increased its domestic sales from 9,284 units in September 2021 to 15,378 units in September 2022. Atul Sood, Associate Vice President (Sales and Strategic Marketing), TKM, said that Urban Cruiser Hyryder – an entry-level SUV model launched by the company in September – has received bookings beyond the company's expectations.

Except for India's largest two-wheeler maker, Hero MotoCorp, the two-wheeler makers also saw their sales increase healthily in September. (see table 2)

TVS Motor Company's domestic two-wheeler sales increased by 16 per cent to 283,878 units in September 2022. The company said it had had a solid start to the festive season, and the demand is expected to accelerate further.

Suzuki Motorcycle said it recorded its highest ever domestic sales in September at 72,012 units, 29.5 per cent more than September 2021.

Satoshi Uchida, Managing Director, Suzuki Motorcycle India Pvt Ltd, said, "With the festive season approaching in the country, we believe there will be an improvement in the customer sentiment. Moreover, there should also be a gradual streamlining of the supply chain."

Royal Enfield's domestic sales increased by 170 per cent to 73,646 units in September. It sold 27,233 units in September 2021.

Hero MotoCorp's sales this year stood at 507,690 units, similar to September 2021 at 505,462 units.

"Heading into the peak festive season, the company remains optimistic about customer demand over the coming weeks. The normal monsoon across most parts of the country and the encouraging farm activity is likely to contribute towards positive customer sentiments," Hero MotoCorp noted.