PV sales race past 1 million mark in Q3 FY24, up 8.26% YoY, shows SIAM data

PV dispatches were up by 4 percent

Thanks to robust economic growth, new launches, record festive numbers, and year-end discounts offered by automakers, passenger vehicle (PV) sales during the third quarter of this financial year went up by 8.26 percent to 10,12,285 units, compared to 9,34,955 units in the corresponding period of the previous year, as per the data released by the Society of Indian Automobile Manufacturers (SIAM).

Out of the total PVs sold, Utility Vehicles (UVs) accounted for a major chunk of the pie at 6,33,000 units (62 percent), followed by passenger cars at 3,44,000 units (34 percent), and vans at 36,000 units (3.55 percent). In the April to December period, PV wholesales stood at 30,83,245 units, from 28,71,759 units in the same period last year.

"It is heartening to note that the passenger vehicle (segment) has crossed significant milestones of sales crossing one million units in the third quarter (of FY24), three million units in the April to December period, and 4.1 million units in the January to December period," said Vinod Aggarwal, President, SIAM, while giving a presentation on the auto industry's performance.

However, PVs witnessed a marginal dip in exports in the December quarter to 1,69,463 units against 1,70,458 units in the same period last year.

Domestic auto sales, across all segments, recorded 19.48 percent year-on-year (YoY) growth to 61,65,997 units in the October to December period of the current fiscal, compared to 51,60,445 units sold during Q3 FY23.
Domestic sales for the quarter included, apart from one million PVs, 2,35,167 units of commercial vehicles (CVs), 1,87,215 units of three-wheelers and 47,31,164 units of two-wheelers.

Rajesh Menon, Director General, SIAM, said that in the third quarter of FY24, PV sales grew by 8.3 percent, CV sales by 3.54 percent, three-wheelers by 35.2 percent and two-wheelers by 22.6 percent compared to last year.

"Passenger vehicle and three-wheeler segments posted their highest ever Q3 sales, while passenger vehicles even crossed the four million mark for the first time in a calendar year," noted Menon.

Domestic PV wholesales grew by 4 percent to 2,86,390 units last month, up from 2,75,352 units in December 2022. Total two-wheeler domestic wholesales stood at 12,11,966 units last month against 10,45,052 units in December 2022, a growth of 15.9 percent.

Similarly, three-wheeler wholesales were up by 30.6 percent to 50,537 units last month, compared to 38,693 units in December 2022.

Calendar year 2023 sales

SIAM also stated that the total domestic annual sales of vehicles across all segments in 2023 were up 9.82 percent to 2,28,36,604 units, compared to 2,07,92,824 units in 2022.

The SIAM president maintained that the year 2023 has been "reasonably satisfactory" for the automobile sector, as PVs, CVs, and two-wheelers posted single-digit growth, while three-wheelers made a "very good recovery."

Aggarwal, who is also the chief executive officer (CEO) of homegrown CV firm Volvo Eicher Commercial Vehicles (VECV), is of the view that the growth in the CV segment was driven by medium and heavy-duty trucks, indicating that "overall industrial activity" has been consistent and the economy of this country has been "doing well."

In his view, "Various schemes of the Government of India that have been operational now are showing good results and helping the auto industry seamlessly transform into new powertrain realms. The auto industry is optimistic that the growth momentum will continue in the year 2024 as well."