Passenger Vehicle Sales Overview
February will increase in both years on a year-over-year basis for the first time in seven years. The number of passenger vehicle sales in the first ten months of FY24 was 3.46 million, an increase of 7.8% from the previous year.
According to estimates, Passenger vehicle manufacturers will ship 360,000 vehicles to dealers in February—the most for any given month.
Industry projections indicate that Passenger vehicle sales will likely increase by 8% annually due to sustained demand and the introduction of new models.
February will increase on a year-over-year basis for the first time in seven years. Passenger vehicle sales increased by 7.8% year over year to 3.46 million in the first ten months of FY24.
Businesses are being advised to exercise caution due to an increase in inventory at the sales channels, which went from 262,000 to 263,000 units at the beginning of the month to 300,000 units at the end of February.
Shashank Srivastava, senior executive officer-sales and marketing at auto market leader Maruti Suzuki India, said, “In line with the expectations, though the overall demand remains strong, bookings have seen a decline of 4-5% year on year as the pent-up demand is behind us and supplies have fully caught up with demand.”
March is typically a month of strong dispatches because it is the last month of the fiscal year, but Srivastava noted that this year may be different due to soaring inventory, which, although still less than 30 days, may compel corporations to reduce dispatches.
Due to a strong base effect in Q2 of FY23, he anticipates that Passenger vehicle sales growth in the upcoming fiscal year would begin to plateau in July.”
Hyundai Motor India’s chief operating officer, Tarun Garg, stated that the company “is receiving a robust demand” for its goods, which is good news for its position in the market.
For the recently released new Creta, the company has received over 70,000 reservations, and Exter is also continuing its successful run. “We are closely monitoring market dynamics and maintain a cautiously optimistic outlook as we navigate potential shifts in consumer sentiment,” he stated.
As sport utility vehicles (SUVs) surge ahead while demand for cars and exports remains muted, passenger vehicle volume will reach a new top for the third consecutive fiscal year, expanding 5-7% on a high base of 6-8% projected for the current fiscal, according to a statement released by Crisil on Monday.
Automakers are still shipping considerably more than is required, according to Manish Raj Singhania, president of the Federation of Automobile Dealers Association, which explains why inventory levels at sales channels are high even though demand is still high.
If the current monthly Passenger vehicle sales continue, India’s total Passenger vehicle sales for the entire fiscal year will approach 4.2 million, which will be a record.
All months of the current fiscal year, except December 2023, had sales volumes of more than three lakh units, translating into an average monthly Passenger vehicle sales volume of 346,553 units.