Around 3.36 Lakh passenger cars were sold in the Indian market in March 2023. The sales increased by over 4% when compared to March last year and the industry marginally increased by 0.5% in comparison to February 2023.
The PV volumes crossed 3 Lakh units for the third month in succession in CY2023 and for the ninth time in FY2022-23! This led the PV Industry to record the highest-ever sales for the month of March and also an all-time high FY volume in FY2023!
March is usually a good month for the PV industry as the buyers are seeking depreciation benefits and also the majority of OEMs announce a price hike in April. In March 2023, OEMs were also pushing liquidation of their Non-RDE stock, and discounts were offered accordingly.
The Industry has now completely undergone the transition to RDE (also termed BS6 - 2.0 / OBD 2). While some stocks are still available at the dealerships, OEMs have completely stopped production and dispatches of the Non-RDE cars. Considering the April 2023 price hike, the cost of acquisition is at an all-time high and it has to be seen how customers accept this transition. Increasing interest rates, rising inflation, and geopolitical conditions are going to impact PV sales and FY2024 shall be a challenge for the Industry.
Maruti Suzuki’s sales was flat YoY and saw its Market Share falling by 2.1%. The OEM has garnered a significant amount of bookings for upcoming Fronx and Jimny and expects volumes to shoot up since Apr'23. It shall be looking up to cover the lost ground in FY2024.
Hyundai's sales in March 2023 stood at 50,600 units, up 13.5% from 44,600 units sold in March 2022.
Tata Motors volumes improved just 4.1% YoY. However, it posted its highest-ever annual domestic sales of 5,38,640 units in FY23, achieving a 46% sales growth over FY22. All four SUVs – Nexon, Punch, Harrier, and Safari, recorded their highest-ever annual sales, contributing a substantial 66% of the total volume. Tata Motors crossed the significant landmark of 50,000 EV sales in FY23, its highest ever, to post a significant growth of 154% over FY22.
M&M announced its highest-ever auto sales numbers for March 2023 and recorded 35,976 unit volumes with a growth of 31 percent. The Indian MNC also clocked the highest-ever annual sales for SUVs at 3,56,961 units in FY23 recording a growth of 60 percent.
Market Share Graph for March 2023 –