Car sales breach 40 lakh mark in 2023, up 4.4% YoY in traditionally lean December

The cumulative sales from April to December this fiscal were 30,90,026 units up 7.6 percent from 28,71,695 units a year ago

Despite being a month when Original Equipment Makers (OEMs) usually go for inventory clearances and limited dispatches to dealers, the Passenger Vehicle (PV) industry saw its wholesale numbers rise 4.4 percent to 2,87,904 units in December year-on-year (YoY) basis, according to industry insiders. The total PV dispatches during December 2022 stood at 2,75,653 units.

The cumulative sales from April to December this fiscal were 30,90,026 units up 7.6 percent from 28,71,695 units a year ago. During the calendar year 2023, the total numbers sold were 41,08,000 units, up 8.3 percent from 37,92,000 units in 2022. Industry observers reckon that for the first time, the domestic PV market crossed the 40 lakh sales mark in a calendar year.

Maruti Suzuki, Hyundai 

The country's largest carmaker, Maruti Suzuki, reported that its overall domestic PV sales stood at 1,04,778 units last month compared to 1,12,010 units in the same month last year — a degrowth of 6.46 per cent. Its total domestic sales, comprising PVs, commercial vehicles and third-party supplies, were at 1,10,667 units last month as against 1,17,551 units in the year-ago period, down 5.86 percent.

Shashank Srivastava, Senior Executive Officer (Marketing & Sales), Maruti Suzuki, said the decline in wholesale numbers was because it kept the lowest stock levels among its peers at the dealers’ end.

“Our retail sales were very good in December with a 51 percent market share (in the PV Market), and our strategy was to bring the stock down substantially and we were very successful in doing that,” Srivastava told reporters in a virtual interaction.

Hyundai Motor India (HMIL), the country’s second-largest passenger vehicle maker, reported domestic wholesales of 42,750 units in December 2023, a 10 percent YoY jump. For the calendar year 2023, the South Korean carmaker reported a 9 percent YoY increase in total sales at 7,65,786 units in 2023, on the back of record annual domestic sales. The company had sold a total of 7,00,811 units in 2022.

Commenting on the milestone, Tarun Garg, COO of HMIL, said, “HMIL has not just kept pace but surpassed industry growth (estimated at around 8.2 percent), a testament to customers choosing brand Hyundai as their preferred mobility brand.”

M&M 

Mahindra & Mahindra Ltd’s (M&M) total domestic PV sales in December 2023 rose 24 percent to 35,174 units over 28,445 units in December 2022. In the Utility Vehicles (UV) segment, M&M sold 35,171 vehicles in the domestic market, a growth of 24 percent and overall, 36,349 vehicles, including exports.

Veejay Nakra, President, Automotive Division, M&M, said, “We continued to face some supply challenges on select parts. We are working closely with our suppliers to mitigate these challenges going forward.”

Tata Motors

Tata Motors reported a 9 percent increase in its total PV sales, including electric vehicles, in the domestic market at 43,470 units in December 2023 compared to 40,043 units in December 2022.

“Going forward, with multiple new products, including a new nameplate scheduled for launch in CY2024, we remain optimistic about continuing the growth trend in the quarters ahead,” Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd, said in a press release.

Toyota Kirloskar Motor (TKM) said its domestic sales were up at 2,21,356 units in 2023 compared to 1,60,364 units in 2022. MG Motor India on January 1 reported an 18 percent growth in total retail sales at 56,902 units in 2023 compared to the previous year. In December 2023, the company's retail sales were 4,400 units, up 13 percent from the year-ago month.