Passenger vehicle sales soar to record high in FY24; dispatches cross 42 lakh mark

Driven by robust demand for sports utility vehicles, passenger vehicle sales in India soared to a record high in FY 2023-24 with dispatch of over 42 lakh units.

The overall passenger vehicle dispatches from manufacturers to dealers last fiscal rose to 42.3 lakh units, an increase of 9 per cent, as compared with 38.9 lakh units in FY2022-23 on the back of record sales by manufacturers, including Maruti Suzuki India, Hyundai Motor India and Toyota Kirloskar Motor.

The share of sports utility vehicles to the overall passenger vehicle dispatches rose to 50.4 per cent in the last fiscal as compared to 43 per cent in FY 2022-23.

"This is the first time that passenger vehicle sales have crossed the 40 lakh sales mark in the country...Much of the growth that has happened is in the SUV segment," Maruti Suzuki India Member Executive Committee Shashank Srivastava told reporters here.

The SUV (Sports Utility Vehicle) segment witnessed a year-on-year growth of 28 per cent; hatchbacks by 12 per cent; sedans by 6 per cent while MPVs (Multi Purpose Vehicles) have grown by 19 per cent and vans by 6.5 per cent last fiscal, he said.

However, he said the industry is expected to see "single-digit" sales growth in the current fiscal due to the high base effect of the fiscal year ending March 31, 2024.

Maruti Suzuki India reported the highest-ever yearly domestic sales of 17,93,644 units and record exports of 2,83,067 units in 2023-24 fiscal.

The company saw its SUV market share double to 22 per cent last fiscal from 11 per cent in the year-ago period, Srivastava said.

He noted that the company missed out on SUVs accounting for 25 per cent of the overall sales due to chip shortage for a few months.

"We acknowledged the fact that gaining strength in the SUV segment is important to breach the 50 per cent market share in the passenger vehicle segment," Srivastava said.

The company's utility vehicle sales last fiscal rose to 6,42,296 units from 3,66,129 units in 2022-23.

MSI also reported its best-ever exports last fiscal at 2,83,067 units.

Rival Hyundai Motor India recorded its best-ever sales at 7,77,876 units for 2023-24 fiscal, an increase of 8 per cent, over 7,20,565 units in the 2022-23 financial year.

In the domestic market, the auto major dispatched 6,14,721 units to its dealers, an increase of 8 per cent, as against 5,67,546 units in FY 2022-23.

Hyundai Motor India COO Tarun Garg said the industry growth in the rural market outpaced urban and SUVs continued to be the fastest-growing segment.

He further said after two years of stellar growth, the industry growth will moderate to low single digits in the new fiscal due to a higher base effect and the stock levels in the industry are now higher.

"We need to get used to the single-digit growth going forward," Garg said.

Toyota Kirloskar Motor also reported its highest-ever wholesales of 2,63,512 units in the last fiscal, an increase of 48 per cent, as against 1,77,683 units in 2022-23.

Toyota Kirloskar Motor (TKM) Vice President, Sales-Service-Used Car Business Sabari Manohar said the company has always remained ahead in assessing and understanding the diverse needs of varied customers and market trends, serving them the best with our wider range of quality products and services.

"We will continue to do so with an emphasis to meet the rising consumer demands across segments. Further, energising our customer centricity will be our focus to move even more closer to our customers on both product as well as service fronts by enhancing customer touchpoints," Manohar said.

Mahindra & Mahindra reported a 28 per cent increase in passenger vehicle wholesales at 4,59,877 units as against 3,59,253 units in 2022-23 financial year.

Tata Motors said its passenger vehicle wholesales stood at 5,73,495 units, up 6 per cent from 5,41,087 units in FY2022-23.

"In FY24, the company's passenger vehicles (including electric vehicles), posted its third consecutive year of highest-ever sales with wholesales of 5,73,495 units (up 6 per cent versus FY23) and retail sales growing around 10 per cent versus FY23," Tata Motors Passenger Vehicles Managing Director Shailesh Chandra stated.

He further said: "Going forward, we expect the demand for passenger cars to remain strong, although the high base effect may keep the growth rate in single digit." In the two-wheeler segment, TVS Motor Company reported its highest-ever sales of 41.91 lakh units in FY 2023-24, a growth of 14 per cent as compared with 36.82 lakh units in 2022-23.

Suzuki Motorcycle India reported its highest-ever sales of 11,33,902 units in FY2023-24, a growth of 21 per cent as against 9,38,371 units in FY2022-23.

Royal Enfield reported 14 per cent year-on-year growth in domestic sales last fiscal at 8,34,795 units as against 7,34,840 units in the 2022-23 financial year.