Car sales seen zipping past demand woes to hit record as FY23 sales expected at 3.9 M units vs 3.07 M in F

The country's largest passenger vehicle maker raced ahead of home grown automaker Mahindra & Mahindra in the fast-growing segment with sales of 42,620 units last month. Mahindra sold 36,205 units, while Hyundai Motor India was next at 32,991 units.

Manufacturers are trying to balance supply and demand given that customers can't buy the models they want and there are discounts on others. This has led to the estimate of PV sales this month being cut to 310,000 units from 350,000 earlier.

Mercedes-Benz said it now expects up to 50% of sales by the end of the decade to come from electrified cars. The carmaker has long said it was preparing for all-electric sales by 2030, but Chief Executive Ola Kaellenius cautioned towards the end of last year that even Europe would likely not be ready by then.

The company, which has commenced work to double its production capacity, is in the process of setting up its largest manufacturing facility with total installed capacity of 1 million units at Kharkhoda, Haryana. The board has additionally approved establishment of a factory for another 1 million units, the site for which is yet to be finalised by Maruti Suzuki.

Maruti Suzuki and Hyundai, the leading carmakers in the country, are set to achieve their best January sales driven by strong consumer demand, particularly for SUVs. Industry estimates suggest that over 375,000 vehicles will be dispatched this month, an increase of more than 8% compared to January 2023. The share of SUVs in the domestic market is expected to grow to 52-53% this year. The preference for SUVs has led to an increase in the average selling price of passenger vehicles in India. Maruti Suzuki and Hyundai are confident about the continued demand for the rest of the quarter.

Sales of entry-level motorcycles in the 110cc and below segment also hit their lowest level

Automakers expect to close the year with sales of 4.10-4.17 million cars, utility vehicles and vans - 8-10% more than 2022 compared to the earlier estimate of about 0-6% growth - despite the high base of last year when sales had grown by 23% to 3.79 million units, several senior executives told ET. Better-than-expected demand for sports utility vehicles (SUVs) at the more premium end of the market is driving the sales, they said.

Around 375,000-380,000 cars, sedans and utility vehicles are expected to be sold in India in March, up from 336,000 units a year earlier, making it the 15th consecutive month that PV sales have breached previous monthly records. For the first time, sport-utility vehicles are set to capture more than half of the passenger vehicle market in a year underscoring their growing popularity.

India's passenger vehicle shipments increased by 12.9% YoY to 331,747 units in April, with all automakers stepping up supplies to dealerships. However, the limited availability of semiconductors affected the production operations of Maruti Suzuki. Retail sales of passenger vehicles marginally grew by 3.5% YoY to 285,700 units during the month. While Maruti Suzuki reported robust increasing volumes in April, its sales were constrained due to a shortage of electronic components that affected deliveries. Despite an increase in enquiry levels following the introduction of new SUV models, concerns remain over inflation and the possible weakening of consumer sentiments due to less favourable monsoon rains.

Car companies and dealers are slashing thousands off purchase prices to attract wary shoppers.