 "Maruti Suzuki Alto K10")
Domestic passenger vehicle (PV) sales jumped from 3.069 million in 2021-22 to 3.889 million in 2022-23, marking a 26.71 per cent increase due to high demand after the pandemic, even though certain supply chain issues continue to affect the market.
"Indian carmakers sold 3.889 million vehicles in FY23, which was higher than the pre-pandemic peak of 3.379 million observed in FY19," said Shashank Srivastava, Senior Executive Director (Sales and Marketing) at Maruti Suzuki India.
He said the Indian auto industry is expected to sell 4.01-4.05 million PVs in FY24, meaning that growth in FY24 is expected to be between 5 per cent and 7 per cent. Maruti Suzuki is expected to grow at a faster rate than the auto industry in FY24.
Maruti Suzuki, India's largest carmaker, sold 1.606 million PVs in India in FY23, a 20.68 per cent YoY growth. "These figures are a matter of satisfaction for us as we achieved these sales despite a lot of supply chain issues," Srivastava said. While the semiconductor chip shortage situation is easing up, it is still affecting the production of certain models.
Srivastava said that the sport utility vehicle (SUV) segment saw the highest growth, 35.9 per cent, among all car segments in FY23. In comparison, the hatchback segment saw volume growth of just 20 per cent in FY23.
He added that while only 23.2 per cent of cars sold in India were SUVs in FY19, this share increased to 43 per cent in FY23.
He said that certain models such as Celerio, S-Presso, and Wagon R are easily available and, therefore, have higher discounts. In comparison, car models like Brezza, where the waiting period is much higher, do not have that level of discount.
Srivastava said that rising interest rates, lower-than-expected economic growth, geopolitical churn, hikes in commodity prices, changes in emission norms, and El Nino's effect on rural demand could be the red flags for the Indian auto industry's growth.
India's second-largest carmaker, Hyundai, sold 567,546 units in FY23, a 17.87 per cent YoY growth. Tarun Garg, Chief Operating Officer at Hyundai Motor India Limited, said, "FY22-23 has been a phenomenal year for Hyundai Motor India, as we introduced seven segment-defining products...Despite global headwinds, we see momentum in the Indian auto industry backed by the strong India growth story led by Gen MZ."
Tata Motors, India's third-largest carmaker, saw a 45.43 per cent growth in PV sales in FY23. Shailesh Chandra, Managing Director at Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said, "FY23 has set a new record for passenger vehicle sales in India. The steep growth witnessed by the industry was driven by post-Covid-19 pent-up demand in the early part of the year, the launch of several new vehicles, and easing of the semiconductor shortage."
While SUVs and EVs (electric vehicles) led this growth, customers' rising preference for safe vehicles and smart technology features was equally pronounced, Chandra noted. Tata Motors holds more than 80% market share in the Indian electric car segment.
Looking ahead, Tata Motors expects the demand for personal vehicles to remain robust with the trend of electrification further strengthening as more options are coming and the overall EV ecosystem (charging, etc), is improving, Chandra said.
"However, the growth rate of the passenger vehicle industry may moderate due to a strong base effect as well as macro factors including hardening interest rates, rising inflation, and the cost impact from progressive regulatory norms. We continue to stay agile, carefully monitoring the supply situation, particularly semiconductors and any potential waves of Covid-19," he added.
Domestic PV sales of major companies in FY23
Domestic PV sales of major companies in FY23
| Company | FY22 unit sales | FY23 unit sales | Annual increase |
| Maruti Suzuki | 1,331,558 | 1,606,870 | 20.68% |
| Hyundai | 481,500 | 567,546 | 17.87% |
| Tata Motors | 370,372 | 538,640 | 45.43% |
| Kia | 186,787 | 269,229 | 44.14% |
| Toyota Kirloskar | 123,770 | 174,015 | 40.6% |
| Honda Cars | 85,609 | 91,418 | 6.79% |
Source: Companies
