SUVs prime attract PVs as auto gross sales climb in FY23

New Delhi: Vehicle gross sales throughout segments in FY23 grew from the yr earlier, information launched by the Society of Indian Vehicle Producers (SIAM) on Thursday confirmed. Nevertheless, the passenger autos section, pushed by sport utility autos (SUVs), noticed gross sales above pre-pandemic ranges.

Nevertheless, SIAM expects non-passenger automobile class to do much better in FY24. The apex trade physique counts manufacturing facility dispatches to sellers as gross sales.

Passenger automobile gross sales grew almost 27% in FY23 from a yr earlier, whereas industrial autos grew 34%, two-wheelers 14.4% and three-wheelers at 18%, information confirmed.

Graphic: Mint

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Graphic: Mint

Whereas passenger automobile gross sales have been simply 1.5% above the pre-pandemic peak in FY19, two-wheeler gross sales (at 3.89 million items versus 3.37 million items in FY19), have been nonetheless at their lowest ranges since FY15, whereas for three-wheelers, FY23 volumes have been lowest in over a decade.

For industrial autos, nevertheless, volumes within the final monetary yr have been near the FY19 peaks on an general foundation, even surpassing peak volumes in sure sub-segments.

“We see good room for progress in FY24, with some segments witnessing reasonable progress, whereas others will develop quicker,” Vinod Aggarwal, president, SIAM, stated in an interview.

“The general image in FY23 was very optimistic and the trade is now headed within the path of additional progress on the again of a optimistic financial forecast, excessive stage of infrastructure investments and the expectations that revenue ranges of shoppers will likely be secure and good. It additionally appears inflation is coming below management now.”

“We’re beginning to get indications that the monsoon this yr will likely be regular as nicely, which will likely be a optimistic for the auto sector”, Aggarwal added.

Whereas industrial autos may see the all-time yr in FY24, for two-and three-wheeler segments it would nonetheless be bridging the hole to cowl up the volumes they’ve misplaced within the wake of the covid-19 pandemic and rising costs, he stated.

In accordance with SIAM, challenges in entry-level segments continued throughout classes in FY23. Passenger automotive volumes (together with hatchbacks, mini and compact vehicles) fell additional in FY23, and are actually 57% beneath their FY17 peaks. Nevertheless, out of the three.89 million whole PV gross sales in FY23, passenger vehicles nonetheless accounted for two.52 million items. The decline in passenger automotive volumes was made up by a 34% bounce in SUV volumes.

Gross sales of bikes beneath the 110cc class declined 38% in comparison with their peak pre-pandemic ranges, whereas 1255 cc and beneath classes fell 27%. Gross sales of mopeds fell 50% throughout the identical interval.

International uncertainties have additionally impacted export demand, with volumes declining in FY23 throughout segments barring PVs. Complete exports fell 26% because of a major drop noticed within the bike and three-wheeler segments. Compared to March 2022, bikes and three-wheelers have skilled a decline of 39% and 50%, respectively.

SIAM information confirmed gross sales for entry-level classes throughout segments have nearly halved in FY23.

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