New car, SUVs sales overcome supply woes, post double digit growth

The Indian passenger vehicle market recorded wholesales of 3,21,608 units in May 2023, thereby posting a 15 percent year-on-year growth from May 2022. This figure comprises factory dispatches of the top nine carmakers in the country, with May 2023 being the fifth month in a row this year where car, SUV wholesales have crossed the 3,00,000-mark.

With sustained demand for utility vehicles – SUVs and MPVs – which now account for every second passenger vehicle sold in the country, most of the companies with strong UV portfolios have recorded double-digit gains year-on-year. Let’s take a closer look at the company-wise performance.

Maruti Suzuki

1,43,708 units – up 15 percent YoY, 7.2 percent MoM

Maruti Suzuki despatched 1,43,708 units in May 2023, a 15 percent year-on-year increase (May 2022: 1,24,474 units) and a 7.27 percent month-on-month increase (April 2023: 1,37,320 units). Strong sales of its pack of six SUVs helped buffer the 30 percent YoY decline in sales of its two budget hatchbacks.

Combined sales of the Alto and S-Presso at 12,236 units are down a substantial 30 percent on year-ago sales and also 13 percent down on April 2023. This is the sole sub-segment amongst the company’s 16 models to see a sales decline.

While SUVs led the charge and contributed 22 percent to overall PV sales last month, Maruti’s key UV models – the Brezza, Grand Vitara and Fronx – remain in high demand. While the Brezza currently commands 18 to 19 weeks of wait time for its over 55,000 pending orders, the bigger Grand Vitara is yet to be delivered to more than 33,000 customers. And the recently launched Fronx crossover has over 46,200 bookings, and an estimated wait time of 16 weeks, depending upon variant and city.

Maruti Suzuki, which has an estimated order backlog of around 3,75,000 PVs, continues to be impacted by a shortage of semiconductors. Production of key models like the Ertiga, XL6, Grand Vitara, Brezza and Fronx were hindered last month.

Hyundai

48,601 units – up 15 percent YoY, down 2.21 percent MoM

Hyundai reported domestic wholesales of 48,601 units, which is a 14.91 percent increase over May 2022’s 42,293 units. Month-on-month, May 2023 sales are down 2.21 percent on April 2023’s 49,701 units.

Commenting on the May 2023 sales, Tarun Garg, COO, Hyundai Motor India said, “The healthy double-digit sales growth for May 2023 was fuelled by our SUVs, Hyundai Creta and Venue. The recently launched new Verna again clocked strong numbers, while our soon-to-be-launched Exter SUV continues to ramp up excitement amongst customers in the SUV space.”

In April 2023, soon after the company had upgraded its entire car and SUV line-up to the BS6 Phase II emissions norms, it added safety equipment in the Creta and Venue and also the i20 hatchback.

Tata Motors

45,984 units – up 6 percent YoY, down 2.38 percent MoM

Tata Motors maintained its sales trajectory although growth moderated last month to single digit. In May 2023, the company despatched a total of 45,984 units, which is a 6 percent YoY increase (May 2022: 43,392 units). Month on month, this is a decline of 2.38 percent (April 2023: 47,107 units).

Tata Motors continues to be ranked third in the market after Maruti Suzuki India and Hyundai, and has capitalised on the surging demand particularly for the Nexon and the Punch, the former being the bestselling SUV in the country right now.

Where Tata Motors continues to have a strong advantage is in the fast-growing electric vehicle market. In May, the company despatched an estimated 5,805 EVs, which takes the April-May 2023 total to 12,321 units.

Nevertheless, in India’s expanding electric car and SUV market, Tata Motors, which had commanded an 80 percent EV market share, is beginning to see competition. As per Vahan retail sales data for April-May 2023, Tata Motors has sold 10,274 EVs, which gives it a market share of 77 percent, followed by Mahindra (889 units/6.64 percent share), and MG Motor India (779 units/5.82 percent share). Mahindra has moved into second place, which is clearly an impact of the growing demand for the all-electric XUV400, the first real challenger to the Nexon EV.

Mahindra 

32,886 units – up 22 percent YoY, down 5.21 percent MoM

Mahindra reported wholesales of 32,883 SUVs in May 2023, which is a 23 percent year-on-year increase, but 5.21 percent down on April 2023. Cumulative sales for the first two months of FY2024 are 67,584 units, up 37 percent YoY (April-May 2022: 49,430 units).

Like Maruti Suzuki India, Mahindra also continues to be impacted by semiconductor supply constraints on specific parts like airbag ECU. In the EV segment, the XUV400 clocked retail sales of 363 units in May 2023, adding to the 526 units it sold in April 2023. Its cumulative sales of 889 XUV400s gives it a 6.64 percent share of the EV market.

Meanwhile, the order backlog at Mahindra has increased to 2,92,000 cars. On November 1, 2022, the company had pending orders of 2,60,000 units, and the rise of 32,000 units over seven months hints that demand for the company’s range of SUVs continues to outstrip its production capacity. The Scorpio N with 1,17,000 bookings is the one with the biggest backlog and accounts for 40 percent of overall bookings. Flagship XUV700, with 78,000 bookings, has 27 percent and is followed by the Thar (58,000 bookings), the XUV300/XUV400 (29,000 bookings) and the Bolero (8,200 bookings).

Mahindra has already expanded its SUV manufacturing capacity from 29,000 units per month to 39,000 units by December 2022 and plans to further increase it to up to 49,000 units in the current financial year or 6,00,000 units per annum.

Toyota Kirloskar Motor 

19,379 units – up 90 percent YoY, 39 percent MoM

Toyota Kirloskar Motor despatched 19,379 units in May 2023, growing strongly by 90 percent (May 2022: 10,151 units), while the month-on-month growth is 39 percent (April 2023: 13,896 units). This robust performance comes on the back of improved supplies following the start of the third shift at the Bidadi plant and has helped TKM go ahead of Kia India in the sales rankings to occupy the fifth position.

Commenting on TKM’s sales in May 2023, Atul Sood, vice president of Sales and Strategic Marketing, said, "We believe that the strong upward trajectory highlights the company's customer alignment and ever-growing product popularity with the latest launches like Urban Cruiser Hyryder, Innova Hycross and the Hilux that continue to support the strong sales momentum in their respective segments.”

Kia India

18,766 units – flat sales (0 percent YoY), down 19 percent MoM

Kia India’s domestic market wholesales of 18,766 units constitute flat sales (May 2022: 18,718 units). Compared to April 2023’s 23,216 units, sales were down 19 percent month on month.

The Sonet compact SUV with 8,251 units was the bestseller and has outsold Kia’s longstanding bestseller, the midsize Seltos SUV, for the fourth month in a row. What could have given a fillip to Sonet sales is the recent launch of the Sonet Aurochs Edition. The Carens MPV, which is fast turning out to be a new growth driver for the Korean carmaker, is the second highest-seller with 6,367 units. The Seltos, with 4,065 units, takes the third rank in the May 2023 sales chart.

Meanwhile, the EV6, Kia’s maiden electric vehicle in India, gained traction with 83 units sold, signalling a growing uptake for premium vehicles.

MG Motor India

5,006 units – up 25 percent YoY, 10 percent MoM

MG Motor India reported retail sales of 5,006 units in May 2023, which marks 25 percent YoY growth (May 2022: 4,008 units) and a 10 percent month-on-month increase (April 2023: 4,551 units). MG reported growth in sales of its ZS EV and a positive response to the recently launched MG Comet EV.

The company, which sold a record 48,866 units in FY2023, is eyeing rapid growth this fiscal and has targeted sales of 80,000 to 100,000 units, which would mean the doubling of sales. One of the drivers of growth is billed to be the compact two-door Comet EV. MG is bullish on consumer demand for the Comet EV and is targeting a 20 percent share of India’s passenger EV market.

Honda Cars India

4,660 units – down by 43 percent YoY, 12.3 percent MoM

Honda reported total domestic sales of 4,660 units in May 2023 which is a 43 percent decline from May last year, and 12.3 percent from April 2023. This comes on the back of Honda having just two models on sale in India right now – the Amaze and the City – as most other models were discontinued in the run up to the BS6 II emission norms.

Having said that, Honda is now gearing up to introduce the all-new Elevate, which finally marks Honda’s entry in the cutthroat midsize SUV segment where it will rival the likes of Creta, Seltos and Grand Vitara. This is also Honda’s first SUV for our market since the discontinuation of the CR-V in 2020. The new Honda Elevate will be unveiled on June 6, and the carmaker says it has already garnered a lot of attention from potential customers. Price announcement for the Elevate is expected by August 2023.

Nissan

2,618 units – up by 23 percent YoY, 0.03 percent MoM

Lastly, Nissan recorded a total of 2,617 units in May 2023 which is a 23 percent growth over May 2022 when it sold 2,131 units, and just a single unit more than 2,617 units it recorded last month. All sales are on account of just a single model that is the Magnite.

And while there’s sustained demand for the sub-4m SUV, Nissan recently introduced a special Geza Edition of the Magnite to boost its sales. The company, however, has no new launches lined up in the near future until it green lights the X-Trail and Qashqai for launch in India that are currently being evaluated to be brought in as CBUs.

Also See:

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