July 2023 witnessed a significant surge in passenger vehicle (PV) wholesales in India, with an estimated 3,52,492 units sold. The remarkable growth can be attributed to the soaring demand for sport utility vehicles (SUVs) and multi-purpose vehicles (MPVs), although the small car segment continues to face tepid demand, impacting overall industry growth. The month marked a 3.1 percent increase in sales compared to the same period last year, making it the best month for the passenger vehicle industry in the calendar year 2023 and likely the best July on record.
| PASSENGER VEHICLES SALES IN JULY 2023 | |||||
|---|---|---|---|---|---|
| July ’23 | July ’22 | YoY growth | June ’23 | MoM growth | |
| Maruti Suzuki | 1,52,126 | 1,42,850 | 6% | 1,33,027 | 14.35% |
| Hyundai Motors | 50,701 | 50,500 | 0 | 50,001 | 1.39% |
| Tata Motors | 47,689 | 47,636 | 0 | 47,359 | 0.69% |
| Mahindra & Mahindra | 36,205 | 28,053 | 29% | 32,588 | 11% |
| Toyota Kirloskar Motors | 20,759 | 19,693 | 5% | 18,237 | 14% |
| MG Motor India | 5,012 | 4,013 | 25% | 5,125 | -2.2% |
| Honda Cars India | 4,864 | 6,784 | -28% | 5,080 | -4.4% |
| Total of 7 OEMs | 3,17,356 | 2,99,529 | 6% | 2,91,417 | 8.9% |
Rise of the SUV and MPV Segment
The utility vehicle (UV) segment, comprising SUVs and MPVs, continues to be the highest-selling category for almost all manufacturers, with every second car sold in India belonging to this segment. The demand for UVs has outpaced that of hatchbacks and sedans, with cumulative sales for the first seven months of 2023 reaching an impressive 23,62,500 units, reflecting a robust 9 percent year-on-year growth.
Maruti Suzuki’s Impressive Performance
Maruti Suzuki, a leading player in the Indian automotive market, reported a stellar performance in July 2023, with wholesales of 1,52,126 units, marking a noteworthy 6 percent YoY growth. The company’s UV portfolio, which includes popular models like Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, S-Cross, and XL6, played a crucial role in this success.
The UV segment saw a remarkable 167 percent YoY growth, contributing 41 percent of the total sales in July 2023 compared to just 16 percent in the same period last year. Additionally, the recent rollout of new models from Nexa has powered this growth, accounting for 34.5 percent of the total PV sales for Maruti Suzuki.
Hyundai’s Steady Growth
Hyundai India recorded wholesales of 50,701 units in July 2023, representing a marginal 0.39 percent YoY increase. The Korean automaker’s sales experienced a modest 1.39 percent month-on-month growth. The Hyundai Creta remained the company’s bestseller, surpassing the 9,00,000-unit sales milestone eight years after its launch. It closely trailed the Tata Nexon, India’s bestselling SUV, with 43,082 units sold in June 2023.
Tata Motors’ Steady Performance
Tata Motors reported stable wholesales of 47,689 units in July 2023, with no significant YoY growth and a minor 0.11 percent MoM increase. Tata Motors has a diverse portfolio, offering multiple powertrain options, including petrol, diesel, CNG, and electric vehicles (EVs). The company remains a prominent player in the EV segment, with sales of 6,329 units in July 2023, a notable 53 percent YoY increase.
Mahindra’s Impressive Growth
Mahindra experienced robust growth in July 2023, with wholesales of 36,205 units, marking an impressive 29 percent YoY increase. The automaker’s SUVs, including Bolero, Bolero Neo, Scorpio N, Scorpio Classic, Thar, XUV300, XUV400, and XUV700, contributed significantly to this success. The company’s performance in the first seven months of 2023, with a 31 percent growth, reflects the surging demand for UVs in the market.
Toyota and MG Motor’s Positive Performance
Toyota witnessed a 5 percent YoY growth in July 2023, with wholesales reaching 20,759 units, while MG Motor recorded a substantial 25 percent YoY increase, with 5,012 units sold. MG Motor’s performance was slightly dampened by recent severe weather and floods in some regions of the country.
Conclusion
July 2023 marked a record-breaking month for the Indian passenger vehicle industry, driven by the surging demand for SUVs and MPVs. Maruti Suzuki, Hyundai, Tata Motors, Mahindra, Toyota, and MG Motor all contributed to the industry’s growth. With the UV segment continuing to dominate sales, automakers are focusing on expanding their offerings and manufacturing capacities to meet the evolving consumer preferences in the Indian market.
