The Indian automobile industry encountered a mixed bag of performance in July 2023, with some segments surpassing expectations while others fell short. Both the Passenger Vehicle (PV) and Commercial Vehicle (CV) segments displayed robust sales growth, in line with analysts’ predictions. On the other hand, the two-wheeler category disappointed with lower domestic and export sales.
The passenger vehicle segment, buoyed by strong demand in Utility Vehicles (UVs), witnessed a decent growth, although the entry-level segment experienced a notable decline. Overall, PV volumes registered a 5% year-on-year (YoY) increase and a 10% sequential growth.
The combined total sales of passenger vehicles wholesales for major listed auto players, including Maruti Suzuki India, Mahindra & Mahindra, and Tata Motors, reached 2,85,408 units in July.
Maruti Suzuki, India’s largest passenger car manufacturer, reported total PV sales of 152,126 units in July, marking a 6.49% growth compared to the same month last year. The company’s new launches, such as the Grand Vitara, Fronx, and Jimny, significantly contributed to the uptick in UV volume, with each model boasting a robust order book.
Mahindra & Mahindra (M&M) also witnessed a substantial surge in PV sales, recording a 29% YoY increase to 36,205 units in the domestic market. The Utility Vehicles segment, in particular, saw the highest-ever SUV sales of 36,205 vehicles in a month. M&M’s strong order book and record-breaking Scorpio N sales bolstered its overall performance.
Tata Motors’ total passenger vehicle sales, including Electric Vehicles (EVs), saw a marginal rise to 47,689 units. The company experienced a remarkable 53% YoY increase in EV sales, selling 6,329 units in July.
Despite the high base of FY23, brokerage firm Motilal Oswal Financial Services predicts that the PV industry will grow in mid-single digits in FY24. This growth will be driven by a strong order book, improved supply chain, and new model launches. Maruti Suzuki is expected to outperform the PV industry due to its robust order book, resolved supply side issues, and successful new launches.
Analysts anticipate a continued positive momentum in the PV segment, fueled by a strong order book and channel filling in August, ahead of the festive season. However, the two-wheeler segment faces challenges that will require further attention to drive growth in the coming months.