Passenger vehicle sales surged to a historic high of 3.31 lakh units in April this year, recording a 12.9% year-on-year (YoY) growth as against 2,93,303 units in the same period last year, according to the latest data by the Society of Indian Automobile Manufacturers (SIAM).
The increase in passenger vehicle sales has been attributed to a smooth transition to BS VI Phase I emission norms from April 1.
"All the segments viz. Passenger Vehicles, Two-Wheelers and Three-Wheelers have posted growth in April 2023, compared to April 2022, which clearly indicates that Industry has been able to transit very smoothly to BS 6 Phase 2 Emission Norms from 1st April 2023. 2s we gradually get into the monsoon season, among other factors, good rainfall can also help the Auto Industry sustain its growth," says Vinod Aggarwal, president, SIAM.
During the month under review, the production of passenger vehicles (excluding Tata Motors) stood at 3,16,122 units as against 3,10,472 units in the same period last year. The passenger vehicle domestic sales (excluding Tata Motors) surged by 13.1% to 2,84,271 units in April as against 2,51,716 units in the same period last year. The passenger vehicle exports (excluding Tata Motors), however, declined by 12% to 40,899 units as against 46,498 units in the same period last year.
Meanwhile, the sales of two-wheelers stood at 13,38,588, recording a surge of 15.1% YoY, as against 11,62,582 units in the same period last year. The sales of three-wheelers registered a 104.2% YoY growth to 42,885 units as against 20,997 units in the same period last year.
"Sales of Passenger Vehicles of April 2023 have been the highest ever in April, returning a growth of 12.9%, compared to April 2022. Two-Wheelers also posted a growth of 15.1% in April 2023, compared to last year. Domestic sales of Three-Wheelers in April 2023 have reached nearer to the pre-covid levels for the month of April," says Rajesh Menon, Director General, SIAM.
Excluding Tata Motors, Maruti Suzuki recorded the highest passenger vehicle domestic sales of 1,37,320 units, registering a growth of 12.5% YoY during the month under review, as against 1,29,995 units in the same period last year. The passenger vehicle exports of Maruti Suzuki, however, fell by 7.5% to 16,834 units in April this year, as against 18,216 units in the same period last year.
This was followed by Hyundai Motor India which sold 49,701 units in the domestic market during the month under review, as against 44,001 units in the same period last year.
CareEdge Ratings in its report forecasts domestic auto sales to grow 7% to 9% in FY24 owing to robust demand supported by various government initiatives for rural and urban development.