June sees lowest car, SUV sales in the first half of 2023

With nine of the 16 mass-market carmakers in India releasing their wholesale numbers for June 2023, it's clear that the 3,25,000-unit mark will have been breached for the sixth month in a row. Cumulative sales of the nine carmakers add up to 3,13,360 units, up 6 percent on their year-ago sales but down 2.47 percent on May 2023’s 3,21,308 units.

In fact, with sales figures of all 16 carmakers, June is likely to see the lowest number in the first six months of this year. With the monsoon season underway and sales usually slower in the July-August period, growth is likely to continue in single digits before the festive season opens in September-October.

Nevertheless, cumulative wholesales in the first six months of 2023 would have crossed the 2-million mark for the first time ever in India. Coming on the back of the record wholesale of 3.8 million units and strong double-digit year-on-year growth of 24 percent in the calendar year 2022, this augurs well for the entire automotive ecosystem.

Maruti Suzuki 

June 2023: 1,33,027 units – up 8 percent YoY, down 7.43 percent MoM

Jan-June 2023: 8,41,633 units – up 10 percent

Its sales of 1,33,027 units in June 2023 are up 8 percent YoY (June 2022: 1,22,685 units) but month-on-month, this is a decline of 7.43 percent (May 2023: 1,43,708 units). Surging demand for its expanding portfolio of utility vehicles, comprising compact and midsized SUVs and MPVs, means that Maruti Suzuki has managed to successfully buffer the slackened demand in the budget hatchback segment. This is sharply reflected in the company's wholesale performance in June 2023. 

The robust 130 percent YoY increase for seven UVs has more than made up for the decline in Alto and S-Presso sales. Surprisingly, there has been a 17 percent YoY decline in the ‘compact car’ segment comprising the high-selling Baleno, Swift and Wagon R hatchbacks, which keep company with siblings Celerio and Ignis, as also the Dzire sedan. This seven-pack sold 64,471 units last month compared to 77,746 units in June 2022.

Maruti Suzuki has outlined its strategic plan to increase its UV market share and the first two quarters of CY2023 reflect just that. The company’s UV sales in the past six months reveal that Q2’s 1,26,401 units are up 19.29 percent on Q1’s 105,957 units. In the first two months of FY2024, the company has increased its UV share to 23 percent from 20.53 percent a year ago. Now, it seems well placed to further increase its UV share but will have to contend with slow sales of some of its other models. 

Hyundai

June 2023: 50,001 units – up 2 percent YoY, up 2.88 percent MoM

Jan-June 2023: 2,96,010 units – up 10 percent

Hyundai’s wholesales of 50,001 units in June 2023 are a marginal 2 percent growth over June 2022's 49,001 units. With this performance, Hyundai has recorded monthly sales of 50,000 units for the third time in the year to date, after January (50,106 units) and March (50,600 units). This takes its first-half (January-June 2023) calendar year sales to 2,96,010 units, up 10.46 percent over year-ago sales (January-June 2022: 2,67,967 units). However, when seen quarter on quarter, Q2 CY2023 (April-June 2023) sales of 1,48,303 units are flat – only 0.40 percent up on Q1 CY2023’s sales of 1,47,707 units.

While the Creta continues to lead the midsize SUV segment in India with 28,635 units sold in April-May 2023 (up 21 percent YoY), the new Verna is also seeing good customer demand – 7,688 units in April-May 2022, and up 238 percent YoY.  Meanwhile, the compact Venue SUV with 20,555 units has seen 23 percent YoY growth in the first two months of FY2024.

Hyundai will be looking to grab a slice of the segment with the Exter mini-SUV, which will launch on July 10, and gets petrol and petrol-CNG powertrain options and segment-first features like a sunroof and a dashcam.

Tata Motors

June 2023: 47,359 units – up 5 percent YoY, up 3 percent MoM

Jan-June 2023: 2,76,104 units – up 9 percent

Tata Motors has reported wholesales of 47,359 units in June 2023, which is a 5 percent YoY increase (June 2022: 45,305 units), and the carmaker’s second-best monthly performance in first-half 2023 (January 2023: 48,289 units). Sales in the first-half of CY2023 stand at 2,76,104 units, up 9 percent from the same period in 2022 (2,53,916 units). At the halfway stage in CY2023, this number is 52 percent of the company’s record CY2022 sales of 5,26,798 units.

Tata Motors, which is among the few carmakers with multiple powertrains spanning petrol, diesel, CNG and electric, is driving home the first-mover advantage it has in electric vehicles (EVs). Its EV portfolio comprising the Nexon EV, Tigor EV and the Tiago EV scaled a new monthly high in June 2023 – 7,025 units – and helped grow CY2023's second quarter total to 19,346 units, which constitutes a robust 105 percent YoY growth (Q2 CY2022: 9,446 units).

Mahindra

June 2023: 32,588 units – up 21 percent YoY, up 0.90 percent MoM

Jan-June 2023: 1,99,567 units – up 32 percent

Mahindra, who has the strongest SUV portfolio, sold a total of 32,588 units, up 21 percent YoY (June 2022: 26,880 units). June was the fourth month in a row this year that Mahindra sales have surpassed the 32,000-unit mark, with the best monthly performance in first-half CY2023 coming in March: 35,997 units. The year had opened with 33,040 units in January and 30,358 units in February.

First-half CY2023 sales, at 1,99,567 units, are up a strong 32 percent YoY (January-June 2022: 151,540) and 59.55 percent of full-year CY2022’s 3,35,088 units. With most of its models, especially the flagship XUV700, Scorpio N, Thar, XUV300, Bolero and the all-electric XUV400, witnessing strong demand, expect Mahindra to up the ante in the coming months as it ramps up production.

The company has already expanded its SUV manufacturing capacity from 29,000 units per month to 39,000 units in 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.

Kia Motors India

June 2023: 19,391 units (est) – down 19 percent YoY, up 3.3 percent MoM

Jan-June 2023: 1,36,108 units, up 12 percent YoY

Kia India recorded wholesales of 19,391 units in June 23, which is a 19 percent YoY decline from the 24,024 units the company dispatched to dealers in June 2022. The automaker said its domestic sales rose by 12 per cent YoY to 1,36,108 units in the January-June period this year. This is also its best-ever half-yearly sales it has recorded in India. Put that June 2023 decline down to buyers holding on to their purchase decision to buy the new Seltos, unveiled on July 4.

Toyota Kirloskar Motor

June 2023: 18,237 units – up 11 percent YoY, down 4.41 percent MoM

Jan-June 2023: 97,816 units, up 31 percent YoY

Toyota Kirloskar Motor (TKM), which is riding a fresh and sustained wave of demand for its cars, SUVs and MPVs, has registered domestic market wholesales of 18,237 units in June 2023, an increase of 11 percent (June 2022: 16,495 units).

Month-on-month, sales are down 4.41 percent on May 2023’s 19,079 units, which was the company’s best-ever monthly performance. In terms of the quarter-wise performance, Q2 CY2023 (April-June 2023) sales of 51,212 units are up 24 percent YoY (April-June 2022: 41,423 units), and 10 percent better than Q1 CY2023 (January-March 2023: 46,604 units).

Half-year-wise, TKM has delivered stronger numbers: January-June 2023 wholesales of 97,816 units are up 31 percent on January-June 2022’s 74,583 units. What has helped TKM cater to growing demand is the company having commenced a third shift at its Bidadi plant in Karnataka from May 2023. This move has helped ramp up production by an estimated 30 percent.

MG Motor India

June 2023: 5,125 units – up 14 percent YoY, up 2.39 percent MoM

Jan-June 2023: 29,038 units – up 21 percent YoY

MG Motor India has reported retail sales of 5,125 units, which represents 14 percent year-on-year growth (June 2022: 4,504 units) and a marginal 2.39 percent increase over May 2023’s 5,006 units. The carmaker's June sales are its second-best monthly numbers in the first six months of this year, after the 6,051 units in March 2023.

Among the highlights of June was the carmaker bagging an order for 500 units of the MG ZS EV from BluSmart, the Gurugram-based EV ride-hailing service and charging infrastructure operator. Last month also saw the launch of the StudioZ AR/VR experience centre in Chennai, designed to enhance the sales experience.

Honda

June 2023: 5080 units – down 35 percent YoY, up 9 percent MoM

Honda registered monthly domestic sales of 5,080 units, and 2,112 units in exports in June 2023. On the other hand, in June 2022, the carmaker registered a sale of 7,834 units in India, while exports stood at 2,502 units. Domestic sales were, therefore, down by 35 percent on a year-on-year basis, while MoM sales were up by 9 percent, with Honda having sold 4,660 units in May 2023.

Honda is also likely to see a major uptick in sales very soon. The company has already opened bookings for the Elevate SUV, which is slated for a launch in the festive season. This will add a much-needed SUV to the carmaker’s line-up, and therefore incremental sales.

Nissan

June 2023: 2,552 units, down 27 percent YoY, down 2.52 percent MoM

Nissan announced that it sold wholesales of 5,832 units in the month of June 2023. The Japanese carmaker sold 2,552 units in the domestic market and shipped 3,280 units overseas. Compared to last month’s domestic sales figures, Nissan’s numbers are a shade lower, by 66 units less than May 2023. The export numbers, on the other hand, saw significant growth as the last month it recorded 2,013 units.

Both in terms of MoM and YoY, Nissan is losing some steam in the Indian market. By clocking 2,618 units in May 2023, the company saw a marginal decline of 2.5 percent in the domestic market. The YoY statics show a sharper decline of 27 percent. The export market has been profitable for the company as it posted a major jump of 38.6 percent on MoM basis.

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