Unprecedented sales in the Indian Automotive Industry in 2023

• Published On: 3 October 2023
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The Indian automobile industry broke all records by selling 363,733 SUVs and cars in September 2023. Indian automakers have now rushed dealer dispatches from factories to raise stocks ahead of the festivities of Dussehra and Diwali.

The Indian automobile industry broke records by selling 363,733 sport-utility vehicles and cars in September. As the festivals of Dussehra and Diwali are approaching, Indian automakers have now rushed dealer dispatches from factories to raise stocks ahead of the festivals.

In September, sales rose to 2%, which is a splendid feat because after the pandemic, requirement for brand-new automobiles was increasing, and these numbers showcase wholesale dispatches from production plants to dealerships and not direct retail sales to consumers.

Benefiting from new launches, demand for sport-utility vehicles (SUVs) remained strong, while for entry-level cars, sales were not easy. Industry leaders have shown their optimistic belief that during the festive season, this demand momentum will bring tremendous growth in sales across various segments.

According to Shashank Srivastava, Senior Executive Officer (Marketing and Sales), Maruti Suzuki, for the ninth consecutive month in September, the monthly sales of passenger vehicles procured their best performance. Also, for the first time, half-yearly sales exceeded the 2 million mark, manifesting robust customer demand.

There are various factors that contributed to the upsurge in dispatches, inclusive of bookings and inquiries, easing semiconductor shortages, and celebrations like Ganesh Chaturthi in Maharashtra and Onam in Kerala. All these factors enabled automakers to expand production and raise stocks for deliveries during Diwali and Dussehra.

Last month, Maruti Suzuki, a subsidiary of Suzuki Motor Corp., reported selling 150,812 units, and in comparison to the previous year, Maruti Suzuki marked a 1.6% increase in selling units. Driven by demand for SUVs like the Brezza, Jimny, Grand Vitara, and Fronx, Maruti Suzuki has sold over a million vehicles in half a year.

In September, rivals like Mahindra & Mahindra (M&M) and Hyundai Motor also reported record monthly sales. Tarun Garg, Chief Operating Officer (COO) at Hyundai Motor India, stated that strong sales momentum is the result of the ongoing festive season, which is resulting in an additional 9% year-on-year growth in domestic sales.

Last month, Mahindra’s sales volume increased by 20% to 41,267 units. Veejay Nakra, President (Automotive Division) at M&M, highlighted that for the third consecutive month, the company’s sales of SUVs are higher than ever. The focus of this festive season is to meet the demands of buyers. Due to the increasing demand for key SUV brands, the availability of semiconductors and select components remains a key focus for the company.

On the other hand, in the farm equipment sector, Mahindra tractors recorded an 11% decline to 42,034 units in September. However, due to the start of the festive season and the recovery in kharif sowing, experts are expecting positive sentiments among farmers.

In September, Tata Motors sold 44,809 vehicles, and in monthly volumes, the company reported a 6% decline. The main reason for this decrease is that Tata Motors has reduced the supply of ongoing models and is now focusing on next-generation models like the Nexon compact SUV and its electric variant.

Tata Motors recorded a 13% increase in sales in the commercial vehicle segment, with 37,214 units sold in September. This growth was imputed to government infrastructure projects, growth in core sectors, and increasing robust demand.

The recent achievements in the industry pave the way for upcoming development and growth and showcase the strength of India’s automotive industry.