Several carmakers, including Maruti and Tata Motors, recorded single-digit growth month on month.
Continued and surging demand for SUVs and MPVs, helped by a sustained rollout of new models over the past eight-odd months, have powered total car sales to an estimated 3,58,000 units, which helps the industry surpass its previous best of 3,55,043 units in September 2022.
August marks the eighth month in a row that passenger vehicle sales have surpassed the 3,25,000-unit mark, a performance that has been propelled by the SUV segment. With every second car sold in India being an SUV or an MPV and the rate of growth in this segment far above that of hatchbacks or sedans, the segment continues to be the number-driver for nearly all car manufacturers. However, several manufacturers have recorded single-digit growth as compared to July 2023 sales.
| Passenger Vehicles Sales in August 2023 | |||
|---|---|---|---|
| Manufacturer | August 2023 | August 2022 | YoY Growth |
| Maruti Suzuki | 1,56,114 | 1,34,166 | 16 percent |
| Hyundai | 53,830 | 49,510 | 9 percent |
| Tata Motors | 45,993 | 47,531 | -3 percent |
| Mahindra | 37,270 | 29,852 | 25 percent |
| Toyota | 20,970 | 14,939 | 40 percent |
| Honda | 7,880 | 7,769 | 1 percent |
| MG Motor India | 4,185 | 3,823 | 9 percent |
| Total of 7 OEMs | 3,26,182 | 2,87,410 | 13 percent |
Let’s take a closer look at the top six carmakers in August 2023.
Maruti Suzuki – 1,56,114 units/ 16 percent YoY
Maruti Suzuki despatched 1,56,114 PVs in August, 21,948 units more than it did a year ago and an increase of 16 percent (August 2022: 1,34,166 units). Month on month, August 2023 sales are up 2.62 percent (July 2023: 1,52,126 units).
The model-wise sales split, as detailed by Maruti Suzuki, reveals that of its four segments, the SUV/MPV portfolio of the Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, S-Cross and XL6 sold 58,746 units, growing 118 percent YoY (August 2022: 26,932 units) and accounts for 38 percent of total sales.
In stark contrast, though, is the rate of growth in the other three segments – sales of the entry-level budget Alto and S-Presso hatchbacks are down by a massive 45 percent to 12,209 units from 22,162 units a year ago. The compact car portfolio (Baleno, Celerio, Dzire, Ignis, Swift, Tour S, Wagon R) with sales of 72,451 units, which betters July’s 67,102 units, posted just a 1 percent YoY increase (August 2022: 71,557). The Ciaz sedan’s sales were down 44 percent at 849 units and the Eeco van sold 11,859 units, down one percent.
Overall sales of hatchbacks at 84,660 units in August 2023 are down 10 percent on August 2022’s 93,719 units. Importantly, the share of hatchbacks to Maruti’s total PV sales is reducing – it is 54 percent in August 2023 versus 70 percent in August 2022. The marked shift to UVs is clearly seen here.
Hyundai – 53,830 units/ 9 percent YoY
Hyundai has registered wholesales of 53,830 units, up 9 percent on year-ago sales of 49,510 units and 6 percent on July 2023’s 50,701 units.
For the calendar year to date, the Chennai-based manufacturer has recorded monthly sales of 50,000 units for the fifth time in the year to date, after January (50,106 units), March (50,600 units), June (50,011 units) and July (50,701 units).
Cumulative sales for the first five months of the financial year 2024 at 2,52,834 units are up 7 percent year-on-year (April-August 2022: 2,35,305 units). What has given Hyundai a fresh charge is the new Exter subcompact SUV launched at an aggressive price of Rs 6 lakh in July. The company has since received over 65,000 bookings, which gives it a strong market standing in the coming months.
Hyundai, whose No. 2 ranking had been under pressure from a hard-charging Tata Motors for quite some time now, will gain from the demand for the Exter and has targeted overall domestic market sales of around 6,00,000 units in 2022. Achieving this goal will translate into 8.6 percent year-on-year growth considering Hyundai had recorded its best-ever calendar year sales of 5,52,511 units in 2022.
Meanwhile, the Creta, which is also the bestselling midsize SUV in India, recently surpassed the 9,00,000-unit sales milestone in the domestic market, eight years after launch.
Tata Motors – 45,933 units/ down 3 percent YoY
Following the flat sales in July 2023, Tata Motors has reported a sales decline of 3 percent in August 2023 with 45,933 units (August 2022: 47,351 units) and also down month on month by 3.68 percent (July 2023: 47,689 units). This is the first decline in the year to date and indicates the company is feeling the heat of growing competition.
Tata Motors has, for the past couple of years, recorded strong double-digit gains albeit on a lower year-ago base. It had clocked best-ever fiscal sales of 5,44,391 units in the financial year 2023, averaging monthly sales of 45,365 units. In the first five months of financial year 2024, cumulative sales are 2,34,072 units, which translates into a monthly average of 46,814 units.
Tata Motors is among the few OEMs with multiple powertrains spanning petrol, diesel, CNG and electric and currently has a seven-model portfolio comprising four SUVs (Nexon, Punch, Harrier, Safari), two hatchbacks (Tiago and Altroz) and one sedan (Tigor). While it retains the first-mover advantage in EVs, it is seeing growing competition in other segments.
One of the moves it took last month to counter fresh competition was to launch the Punch CNG, priced between Rs 7.10 lakh-Rs 9.68 lakh (ex-showroom). The Punch CNG takes on the recently launched Exter CNG, which costs Rs 8.24 lakh to Rs 8.97 lakh, and has drawn over 50,000 bookings. Interestingly, Tata Motors has also introduced a single-pane sunroof on the Punch to make it compete head-on with the Exter.
Meanwhile, on the EV sales front, Tata Motors continues to make gains. In August, the carmaker sold 6,236 EVs, up 55 percent YoY. Its April-August 2023 EV sales add up to 31,911 units, which marks a robust 81 percent YoY growth.
Starting this festive season, Tata Motors has outlined launch plans for around half a dozen models, including facelifts and new powertrain options. First off is the September 14 launch of the facelifted Nexon and Nexon EV. What’s more, given that a Punch EV, equipped with a front charging slot, was snapped testing recently, expect Tata Motors to rev up the launch plans for that variant.
Mahindra – 36,205 units/ 25 percent YoY
After scaling a new monthly high of 36,205 units in July 2023, Mahindra’s sales in August have touched 37,270 units, a 25 percent YoY increase (August 2022: 29,852 units), and up 2.94 percent on July 2023 numbers. Last month was also the sixth straight month that Mahindra sales have surpassed the 32,000-unit mark.
The cumulative eight-month sales of 2,73,042 units constitute a robust 30 percent YoY increase (January-August 2022: 2,09,445 units). This also means that cumulative January-August 2023 sales are already 81 percent of total CY2022 sales of 3,35,088 units.
Meanwhile, Mahindra’s April-August 2023 sales of 1,73,647 units are 48 percent of the record FY2023’s 3,59,253 units, with seven months left for the financial year 2024 to close.
Mahindra & Mahindra, which has eight SUVs (Bolero, Bolero Neo, Scorpio, Scorpio N, Scorpio Classic, Thar, XUV300, XUV400 and XUV700) and a sole sedan (eVerito), is among the OEMs riding the surging wave of demand for SUVs. Its robust and sustained market performance can be gleaned from the fact that it has logged 30 percent YoY growth in the first eight months of 2023 and 29 percent YoY in the first five months of financial year 2024.
Toyota – 20,970 units/ 40 percent YoY
Toyota has reported overall sales of domestic market sales of 20,970 units in August 2023, up 40 percent year on year (August 2022: 14,939 units). The month-on-month growth was 1 percent (July 2023: 20,759 units).
The Japanese carmaker’s August numbers are its best in the first five months of the fiscal as well as the entire calendar year to date. Cumulative sales in the first eight months of CY2023 at 1,39,227 units are up 27 percent (January-August 2022: 1,09,215) and 22 percent (92,623 units) in the first five months of FY2024 (April-August 2022: 76,055 units).
What has energised the monthly numbers is the rollout of new models over the past six months as well as the increased production capacity through three-shift operations to meet growing market demand. Last month saw Toyota India launch the new luxury Vellfire MPV, priced at Rs 1.20 crore, as well as the Maruti Ertiga-based Rumion MPV priced at Rs 10.29 lakh.
Honda – 7,880 units: 1 percent YoY
Honda reported sales of 7,880 units, up by 1 percent YoY (August 2022: 7,769 units) and 62 percent month on month (July 2023: 4,464 units). One can pin down the steep MoM increase to the company dispatching a large number of the Elevate SUV to dealers. The Honda Elevate was launched at Rs 11 lakh on September 4.
MG Motor India – 4,185 units/ 9 percent YoY
MG Motor India has reported retail sales of 4,185 units in August 2023, up 9 percent on year-ago sales of 3,823 units but down 16.50 percent on July 2023’s 5,012 units. For the first five months of FY2024, cumulative sales are 23,879 units, up 30 percent (April-August 2022: 18,356 units).
The carmaker is gearing up and building further on the current momentum in the festive season. It launched the all-new Blackstorm edition of its Astor SUV at Rs 14.48 lakh, which comes on the back of the July launch of the updated ZS EV with ADAS Suite at Rs 27.90 lakh.
With the wave of surging demand for SUVs continuing to grow, and the two-month festival season having commenced, India’s passenger vehicle segment can be assured of sustained demand in the coming months. Given the strong momentum of sales, particularly for SUVs, September should prove to be another record-breaking month.
