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Despite pressure, demand for personal mobility pushes passenger vehicle sales in Q1 FY2023, SIAM

In the first quarter of FY2023, passenger car segment grew by almost 42 per cent at 4,11,441 units, compared to a growth of 62 per cent in the SUV segment at 4,64,558. The SUV segment outsold the car segment by almost 50,000 units.

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The automotive wholesales in India is seeing some green shoots of recovery, albeit a low-year ago base. But on the other hand, the industry is facing headwinds in terms of lower demand in the entry-level two-wheeler and passenger vehicle segment.

According to the data released by the Society of Indian Automobility Manufacturers (SIAM) in the first quarter of FY2023, the overall automotive wholesales came at 49,35,870 units, which was 55 per cent higher albeit a low-year ago base. But when looking at data compared to the pre-Covid (FY2019-20) era, the sales were lower 23 per cent.

In term of segment-wise sales, robust demand for SUVs and premium vehicles helped outpace the slowdown in demand for entry-level cars. This translated to the automotive wholesales in the passenger vehicle segment report wholesales of 9,10,431 units, which was 22 per cent higher compared to FY2019, a pre-covid era. This comes despite the slowdown in demand for entry-level vehicles, which according to SIAM data has declined almost 59 per cent.

In the first quarter of FY2023, passenger car segment grew by almost 42 per cent at 4,11,441 units, compared to a growth of 62 per cent in the SUV segment at 4,64,558. The SUV segment outsold the car segment by almost 50,000 units.

For the commercial vehicle segment, the demand is slowly coming back, especially with the push from infrastructure projects. The overall CV wholesales came at 2,24,512 units, which was 2 per cent higher than FY2020. While the M&HCV segment wholesales were up 2 per cent, the LCV segment grew by 10 per cent over FY2020.

On the other hand, the three-wheeler segment seems to be reeling under pressure. The slowdown in sales for the last two years due to the Covid-19, hesitancy among buyers, and increase in raw material, as well as CNG prices, have managed to deter customers from buying new three-wheelers. During Q1 the three-wheeler segment reported sales of 76,293 units, compared to 24,522 units last year, and 1,49,797 units in FY2020.

Coming to the two-wheeler segment, the slowdown in demand for entry-level products, took a toll on the overall industry volume. While there was demand in two-wheelers in the above 125cc segment, the volumes were not enough to reach pre-covid levels. During the first quarter, the two-wheeler segment saw sales of 37,24,533 units, which consisted of 12,07,903 scooters; 24,05,228 motorcycles and 1,11,402 mopeds. Compared to 15,14,202 scooters; 33,31,782 motorcycles and 1,68,087 mopeds sold in Q1 FY2020.

Rajesh Menon, Director General, SIAM appreciated the recent steps that the government’s significant measures to ease the inflationary pressure and help the common man by reducing central excise duty on petrol, diesel and changing the duty structure to moderate the prices of steel and plastic.

But urged the government to provide “similar support on CNG prices which has seen an exponential increase in the last 7 months. Support on CNG prices would help the common man, facilitate public transport and will enable a cleaner environment.”

FY2019-20FY 2021-22FY2022-23Change (YoY)Change (vs FY 2019)
Passenger vehicle
Cars447,453337,191411,44122%-9%
SUVs224,224286,092464,55862%52%
Vans40,94322,98934,43250%-19%
Total passenger vehicles712,620646,272910,43141%22%
Commercial vehicle
M&HCV
Passenger Carrier10,3611,0867,707610%-34%
Goods Carrier64,01028,07267,978142%6%
Total M&HCV74,37129,15875,685160%2%
LCVs
Passenger Carrier15,8684,29711,590170%-37%
Goods Carrier118,05972,345137,23790%14%
Total LCVs133,92776,642148,82794%10%
Total commercial vehicles208,298105,800224,512112%7%
Three-wheeler
Passenger Carrier119,33315,16250,663234%-136%
Goods Carrier30,4648,66121,350147%-43%
E-rickshaw06433,567455%NA
E-cart0567131173%NA
Total three-wheeler149,79724,52276,293211%-96%
Two-wheelers
Scooters1,514,202604,2911,207,903100%-25%
Motorcycles3,331,7821,740,3082,405,22838%-39%
Mopeds168,08769,009111,40261%-51%
Total two-wheelers5,014,0712,413,6083,724,53354%-35%
Quadricycle00101NANA
Grand total6,085,4063,190,2024,935,87055%-23%

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