Record jump in domestic PV sales in September with the start of the festive season

Domestic passenger vehicle (PV) sales of top carmakers hit a record high in September on the back of new models, increased availability of semiconductor chips and the start of the festive season.

Sales figures released by the top nine carmakers – excluding Mahindra & Mahindra – jumped 89.6 per cent to 306,211 units. (See Table 1) Auto companies count wholesale sales, units sent to dealers, as sales.

Domestic sales of India’s largest carmaker Maruti Suzuki increased from just 63,111 units in September 2021 to 148,380 units in September 2022. Shashank Srivastava, executive director of sales at Maruti Suzuki, said in a virtual press conference that the company’s market share has increased in September 2022. 42 percent, which is 7.8 percent more than in September 2021.

“In September last year, it was quite low because we were having problems with semiconductor (chip) supply issues,” he said. The executive director said that while the chip shortage issue has been resolved by about 95 per cent, it would be difficult to say when it could be resolved completely.

He said the rising repo rates will have a negative impact on the auto industry, but its impact is yet to be felt by the auto companies as the retail rates have not yet been increased proportionately by the lenders. He said banks like State Bank of India, Bank of Baroda and ICICI Bank have reduced their retail rates amid the festive season.

Hyundai said its domestic sales grew 50.2 per cent to 49,700 units in September this year due to the resilience shown by the Indian economy amid the ongoing festive season and global turmoil.

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Tarun Garg, Director, Sales, Marketing and Service, Hyundai Motor India said, “The company’s three new launches in the SUV space – Hyundai Venue, Venue N Line and Tucson – have received phenomenal customer response. About 50 percent of the company’s sales come from the SUV segment.

Tata Motors achieved its highest ever domestic monthly sales of PVs this September, when the company shipped 47,654 units – 85 per cent more than the same month last year.

Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said on Saturday that the PV industry witnessed strong demand during Q2 FY23 on account of festive season and new launches.

Chandra said that in future, the company expects strong retail sales on the back of improvement in vehicle supply during the festive season.

Like Tata Motors, Kia India reported its record monthly domestic PV sales in September at 25,857 units, a jump of 79 per cent. The Korean carmaker said it has exceeded its 2021 domestic sales in the first nine months of 2022.

Toyota Kirloskar Motor (TKM) increased its domestic sales from 9,284 units in September 2021 to 15,378 units in September 2022. Atul Sood, Associate Vice President (Sales and Strategic Marketing), TKM said, “The Urban Cruiser Haider is an entry-level SUV model. Launched by the company in September – has received bookings beyond the company’s expectations.

Barring India’s largest two-wheeler maker Hero MotoCorp, two-wheeler makers also saw a decent growth in their sales in September. (see Table 2)

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TVS Motor Company’s domestic two-wheeler sales grew 16 per cent to 283,878 units in September 2022. The company said that it has got off to a solid start to the festive season, and demand is expected to pick up further.

Suzuki Motorcycles said that it recorded its highest ever domestic sales of 72,012 units in September, up 29.5 per cent over September 2021.

Satoshi Uchida, Managing Director, Suzuki Motorcycle India Pvt Ltd said, “With the festive season approaching in the country, we are confident that the customer sentiment will improve. In addition, the supply chain should also be gradually streamlined.”

Royal Enfield’s domestic sales grew 170 per cent to 73,646 units in September. It sold 27,233 units in September 2021.

Hero MotoCorp’s sales this year stood at 507,690 units as against 505,462 units as of September 2021.

Hero MotoCorp said, “The company remains optimistic about customer demand in the coming weeks amid the peak festive season. Normal monsoon and encouraging agricultural activity over most parts of the country may contribute to the positive customer sentiments.”