 "PV dispatches highest ever in April, grow 13% YoY, shows SIAM data")
Passenger vehicle sales continued to be on a double-digit growth trajectory even as the country transitioned to BS VI phase II emission norms from April. In fact, domestic sales (wholesales) of passenger vehicles this April was the highest recorded in any April, said the Society of Indian Automobile Manufacturers (SIAM).
“Domestic sales of Passenger Vehicles of April 2023 have been the highest ever in April, returning a growth of 12.9 percent, compared to April 2022,” said Rajesh Menon, Director General of SIAM. The total number of units sold in this category was 331,278 units versus 293,303 units a year ago (refer chart).
Apart from passenger vehicles, two-wheelers as well as three-wheelers have also done well in April.
Vinod Aggarwal, President, SIAM, said, “All the segments - Passenger Vehicles, Two-Wheelers and Three-Wheelers have posted growth in April 2023, compared to April 2022, which clearly indicates that the industry has been able to transit very smoothly to BS VI Phase 2 emission norms from April 1, 2023.” He added. "As we gradually get into the monsoon season, among other factors, good rainfall can also help the Auto Industry sustain its growth."
Despite a growth in dispatches, PV segment leader Maruti Suzuki India’s production dipped by 5.7 per cent in April to 144,097 units. Mahindra and Mahindra (M&M), on the other hand, has managed to raise production by almost 35 per cent in April. Tata Motors did not share production numbers.
Two-wheeler sales in April went up by 15.1 percent year-on-year (YoY). Three-wheeler sales more than doubled to 42,885 units in April.
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Menon pointed out that domestic sales of Three-Wheelers in April 2023 have reached nearer to the pre-covid levels for the month of April 2023. E-rickshaw sales have grown by more than three times to 2591 units within the three-wheelers category, indicating growing demand in the segment.
According to a recent ICRA report, the electric segment could account for 14-16 per cent of new three-wheeler sales (excluding rickshaws) by FY2025, up from 8 percent currently. Penetration is estimated to rise to 35-40 per cent by FY2030 as the product gains more acceptance and financing-related challenges subside.
Kinjal Shah, Vice President & Co Group Head, Corporate Ratings, ICRA said in March, “e3Ws (including e-rickshaws) have been at the forefront of India's electrification journey, being among the early adopters. In 10M FY2023, the 3Ws (excluding rickshaws) recorded an electric penetration of 8 per cent, compared to 4 per cent for two-wheelers and 1 per cent for passenger vehicles.”
A favourable regulatory environment with central and state government subsidies to lower capital costs, as well as reduction or waiver of registration fees, road taxes, and permit requirements, continues to be supportive of e-auto adoption. “Coupled with the inherently lower running costs, this results in a much lower (40-45%) total cost of ownership (TCO) than conventional diesel or CNG 3Ws, making the conversion to e-autos an attractive proposition,” Shah said.
Scooters have grown the fastest among two-wheelers clocking a 19.5 per cent growth YoY to 464,389 units. Motorcycles have grown by 14 per cent (839,274 units) while moped volumes fell by 10 per cent (34,925 units).
Domestic Sales for April
| Category | April 2022 | April 2023 |
| Passenger Vehicles | 2,93,303 | 3,31,278 |
| Three Wheelers | 20,997 | 42,885 |
| Two Wheelers | 11,62,582 | 13,38,588 |
NOTE: BMW, Mercedes, JLR & Volvo Auto data are not available. Tata Motors Domestic Sales data included only in ‘Passenger Vehicles’, detailed break-up is not available
Source: SIAM