PV sales in India up by 26.7% in FY23

India’s passenger vehicle sales grew 26.7% in the fiscal year 2022-23, as chip shortages eased and demand for sport utility vehicles (SUVs) surged. Maruti Suzuki, Hyundai and Tata Motors reported their highest-ever dispatches to dealers last fiscal, enabling the domestic passenger vehicle industry to log in best-ever performance to date.

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New Delhi, April 13: India’s Passenger Vehicle (PV) automobile has recorded its highest ever sales in FY 2022-23. After reeling under distress in-terms of both demand and production, PV sales recorded a surge of 26.7% to 38,90,114 units in FY23, as against 30,69,523 units in Fy22.

The overall sales of automobile increased by 20.3% to 2,12,04,162 units in April 2022 to March 2023 period, as against 1,76,17,606 units in the same period last year. According to the latest data released by the Society of Indian Automobile Manufacturers (SIAM), shortage of semiconductor chip have eased and demand for sport utility vehicles (SUVs) increased.

Auto sales are among the key indicators used to assess India’s private consumption, as it has a weighting of more than 50% in calculating economic growth. 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.

Buying ahead of implementation of new fuel emission norms, and strong demand during the festival season also drove sales towards the end of the year.

Sales of commercial vehicles witnessed a 34.3% growth in sales to 9,62,468 units in FY23 as against 7,16,566 units in the same period last year. This was followed by sales of two-wheelers—which is seen as an indicator for rural demand— 1,58,62,087 units, a growth of 16.8% as against 1,35,70,008 units in FY22.

The three-wheeler sales stood at 4,88,768 units during the year under review as against 2,61,385 units in the same period last year.

Rajesh Menon, Director General, SIAM, has 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.”