The Indian Car Market’s March continues its climb with sales of passenger vehicles in the fiscal year 2022-23 growing by 26.7 percent.
According to the latest figures released by the Society of Indian Automobile Manufactures (SIAM), wholesale passenger vehicle volumes for the year increased to 3.9 million units, up from 3.1 million from a year ago.
Introduction Of New Car Models
SIAM notes that several factors have contributed to a big boost in demand for cars in the Indian Automobile Market. The trend of rebounding demand for cars in the Indian automobile market. The trend of rebounding demand was already at play but FY23 saw even more fertile conditions being related to further bolster for manufacturers.
Covid Years of 2020 and 2021 saw manufacturers pushing back their product launch plans. As lockdown-related restrictions eased, brands began firing these planned products and the slew of Launches continued for most parts of 2022 as well. Positive sentiment towards new and updated models created a sense of excitement and played a role in accelerating demand.
Preferences For SuVs
- SIAM especially makes note of the increasing demand for SUVS bolstering demand in the market.
- Pent-up demand for many models also came as a shot in the arm for manufacturers having a wide array of options with an SUV body style.
- So while companies like Tata Motors, Hyundai, and Mahindra among others are strengthing their respective SUV lineup, Maruti Too has been busy with a clearly stated ambition of leading the SUV segment.
SemiConductos Shortage Issues
More than two years into the pandemic, the gap between chip supply and demand has widened across all semiconductor-enabled products. While sales of all consumer goods plummeted in the first half of 2020, and automotive sales dropped precipitously—up to 80 percent in some locations—demand rebounded more than expected later in the year, continued to grow in 2021, and remains strong today.
How All Dealers Expecting This
- Homegrown automaker Tata Motors Ltd and rival Hyundai Motor Co’s India unit dominate sales of SUVs – which cost at least 60% to 70% more than the lowest-priced entry-level car in the country.
- SUVs including Tata’s Nexon and Punch, Hyundai’s Creta, and Maruti Suzuki India Ltd’s Vitara Brezza were among the top-selling cars in India in 2022.
- Passenger vehicle volumes rose 27% to 3.9 million units in the year ended March 31, said SIAM, which records sales to dealers. Sales of utility vehicles stood at over 2 million.
The Challenges
He expects the Indian auto industry to perform well in 2023-24 if the domestic economy remains strong and monsoon rains are good. Earlier this month, the Federation of Automobile Dealers Associations (FADA), which publishes retail sales data, was said to have a low single-digit percentage in the current fiscal, mainly due to inflation, price hikes by carmakers, and regulatory changes.
India’s annual retail inflation eased to 5.66% in March from 6.44% the previous month, government data showed on Wednesday.