Robust PV and two-wheeler demand drive India auto sales over 21 million in FY2023

The automotive industry in India clocked wholesales of 21.2 million units in FY2023, which was a 20 percent growth over the previous fiscal. The industry reported double-digit growth across segments.

In the passenger vehicle segment, the launch of new products especially driven by demand for SUVs, saw the segment grow by 27%. The segment reported sales of 1.7 million cars (+19% YoY), over 2 million SUVs (+35% YoY), and Vans at 1.39 lakh units (+23% YoY), thus translating to overall sales of 3.89 million vehicles.

The commercial vehicle segment also reported an overall growth of 34 percent and was just a few thousand units shy away from crossing the million unit mark. The growth was primarily driven by the goods carrier segment across M&HCV and LCV segments. With FY2023 being the first normal year post-pandemic the demand for people carrier vehicles saw high growth albeit a low-year-ago base.

In the three-wheeler segment, the growth was primarily driven by the passenger carrier segment and a smart uptick in demand for E-rickshaw and Cart.

The two-wheeler segment sales crossed the 15 million units mark (+17% YoY), with motorcycle sales almost doubling that of scooter sales. A total of 5.19 million scooters (+26% YoY) were sold in the country, while motorcycle and moped sales came at 10.23 million units (+14%) and 4.41 lakh units (-7% YoY) respectively. The moped segment was the only category to report negative YoY growth.

Vinod Aggarwal, President, SIAM said, “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 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 is close to the previous peak of 2018-19. Inspite of good growth in domestic sales of three-wheelers, they are still below the 2010-11 levels, and the two-wheelers domestic sales are still below the 2014-15 levels. Favourable Policy initiatives ranging from the impact of new PLI Schemes, encouraging announcements in Budget, forward-looking logistic and Foreign Trade policies and recently announced gas pricing guidelines would go a long way in supporting the growth of the industry.”

Rajesh Menon, Director General, SIAM said, “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.”

Make in India for the World

On the export front barring the passenger vehicle segment, all segments were in the red. Interestingly, in the passenger vehicle segment, the demand for cars was higher than the SUVs. A total of 413,787 cars were exported (+10% YoY), compared to 247,493 SUVs (+23% YoY).

On the other hand, the export of CVs came at 78,645 units, which was 15 percent lower YoY, with three-wheelers at 365,549 units, down 27 percent YoY, while two-wheeler sales were at 3.65 million units, down 18 percent respectively.

The total exports from India stood at 4.76 million units, which was 15 percent lower compared to 5.61 million units last year.