Passenger vehicle sales grew 26.7% in FY23 with ease in availability of chips: SIAM

Passenger vehicles sales in the last financial year, 2022-23, grew 26.7 per cent as the chip shortages eased and demand for sport utility vehicles (SUVs) surged, Society of Indian Automobile Manufacturers (SIAM) data showed. Despite inflation trending higher through the year, a mix of improved chip supply, higher incomes and pent-up demand, especially for SUVs supported sales at Indian automakers.

Earlier this month, FADA said the passenger vehicles segment in India grew 14 per cent year-on-year (YoY) as all categories saw double-digit growth.

The SIAM data showed that the wholesale passenger vehicle volumes for FY2023 rose to 3.9 million units from 3.1 million units a year ago. Besides, domestic sales of PVs grew 4.7 per cent in March at 2,92,030 units as compared to the same month in 2022.

Passenger Vehicles (PVs) sales

	Production - March 2022	Production-March 2023	Domestic sales-March 2022	Domestic sales-March 2023
Passenger Cars	1,68,117	1,63,367	1,38,014	1,22,133
Utility Vehicles (UVs)	1,49,860	1,84,708	1,32,073	1,57,881
Vans	9,601	12,932	9,438	12,016
Total Passenger Vehicles (PVs)	3,27,578	3,61,007	2,79,525	2,92,030

Source: SIAM

In the month of March, the total vehicle wholesales last month stood at 16,37,048 units, as compared to 15,10,534 units a year ago.

Two-wheeler sales, which are an indicator of the financial health of lower- to middle-income households, also rose 16.9 per cent.

Commenting on sales data, Vinod Aggarwal, President, SIAM said: “The year 2022-23 has been a year of consolidation, post Covid. The year started again with supply chain disruptions from Ukraine conflict. However with efficient management of supply chains and better availability of commodities especially for the electronics items, prices have moderated over the year, though it remains a concern. Passenger Vehicle segment posted the highest ever domestic sales surpassing the previous peak in 2018-19. Commercial vehicles posted the 2nd highest domestic sales and is close to the previous peak of 2018-19. In spite of good growth in domestic sales in three-wheelers, they are still below the 2010-11 levels and the TwoWheelers domestic sales are still below the 2014-15 levels."

He added: "Favourable Policy initiatives ranging from the impact of new PLI Schemes, encouraging announcements in Budget, forward-looking Logistic & Foreign Trade policies and recently announced Gas pricing Guidelines would go a long way in supporting the growth of the Industry.”

The auto industry body said that Maruti Suzuki, Hyundai and Tata Motors logged their highest-ever dispatches to dealers in FY23, which gave the domestic passenger vehicle industry a good lift to register its best-ever performance to date.

Maruti Suzuki India, which is the largest carmaker in the country, saw its highest wholesales to date at 19,66,164 units, up 19 per cent from 16,52,653 units in 2021-22, the SIAM report said. The domestic dispatches rose to 17,06,831 units in 2022-23, up 21 per cent from 14,14,277 units in the FY22. In the last fiscal, Maruti Suzuki India launched cars such as Maruti Brezza, Dzire, Baleno.

Hyundai Motor India too clocked its highest overall wholesales in fiscal 2022-23, since it entered the Indian market. Its wholesales touched 65,795 units from 55,100 a year before. The total domestic sales were up to 50,600 units from 44,600 units in the FY22. In the last fiscal, Hyundai launched Hyundai Creta, Ioniq 5, Verna.

Tata Motors too reported the best-ever passenger vehicle dispatches in the domestic market last fiscal at 5,38,640 units, up 45 per cent from 3,70,372 units FY22. In the last fiscal, Tata launched Tata Tigor, Nexon, and Tiago. 

Total sales of PVs (company wise)

Brand	Production March 2022	Production March 2023	Domestic Sales 2022	Domestic Sales 2023
Maruti Suzuki India Ltd	1,59,211	1,50,820	1,33,861	1,32,763
Hyundai Motor India Ltd	55,100	65,795	44,600	50,600

Source: SIAM

Earlier this month, FADA data showed that 2-wheelers, 3-wheelers, passenger vehicles and commercial vehicles grew by 12 per cent, 69 per cent, 14 per cent, and 10 per cent, respectively. Only tractors grew 4 per cent. Total registrations across segments rose 13.89 per cent year-on-year to 20,41,847 units in March 2023, compared to 17,92,802 vehicles in March 2022.

According to the FADA report, retail sales of passenger vehicles reached a record high of 3.6 million vehicles, growing 23 per cent YoY. The previous high was in FY'19 when retail sales were 3.2 million vehicles. 

Last week, SIAM president Aggarwal said realignment of the gas pricing mechanism by insulating the consumers from the spikes in global prices will soften prices and will provide much-needed relief to the transportation sector. In a statement, he noted that the measure will also help in re-igniting interest in CNG vehicles in India and would go a long way in promoting a clean alternative fuel in various parts of the country.

"Incentivising greater production of natural gas will result in reduction in import dependence of conventional fuels, thereby enabling expansion of CNG infrastructure across the country and facilitating wider availability of CNG for vehicles," Aggarwal stated.

The Union Cabinet on April 6, approved a revision in the formula for pricing of natural gas and imposed a cap or ceiling price to help cut CNG and piped cooking gas prices by up to 10 per cent.

(With agency inputs)

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