According to industry estimates, a total of 352,492 passenger vehicles were dispatched from factories to dealerships in July, which represents a 3.1% increase compared to the previous year’s high base of 341,971 units. This figure marks the highest sales for the month of July on record for the passenger vehicle segment in India.
It is worth noting that automakers in India primarily report wholesale despatches from factories rather than retail sales to customers. Maruti Suzuki reported a 6.5% growth in sales, reaching a total of 152,126 units sold last month. Sales of small cars at Maruti Suzuki declined by 36.5% to 78,040 units, while sales of utility vehicles nearly tripled to 62,049 units. Maruti Suzuki emerged as the leader in the SUV segment, surpassing homegrown auto major Mahindra & Mahindra, with sales of 42,620 units of models like the Brezza, Grand Vitara, Fronx, and Jimny.
Shashank Srivastava, senior executive officer (marketing and sales) at Maruti Suzuki, stated that the automaker has captured the number one position in the SUV market with a 24.6% share. He also mentioned that the share of small cars in the industry is expected to decrease to 30.5% by the end of the fiscal year, compared to 34% in FY23. On the other hand, SUVs continue to experience rapid growth due to new launches, contributing to the company’s increased market share in July. Maruti Suzuki’s market share rose to 43.3% last month, up from 41.8% in July 2022. Hyundai Motor India reported almost unchanged wholesale volumes at 50,701 units, and Tata Motors also saw largely unchanged sales at 47,628 units.
With the easing of supply constraints, Hyundai is optimistic about strong sales during the upcoming festive season. Tarun Garg, chief operating officer, said, “With the semiconductor supply issues more or less behind us, we are all geared up for the upcoming festive season in India starting with Onam in Kerala.” In July, Mahindra recorded its highest-ever SUV sales, with 36,205 units sold. Veejay Nakra, president (automotive division), expressed that the company continues to witness robust demand for its key brands. Additionally, Toyota Kirloskar Motor achieved its highest-ever despatches in July, with 20,759 units delivered. Atul Sood, vice-president (sales and strategic marketing) at Toyota Kirloskar Motor, stated, “Given the mid-year sales trend and the favorable demand sentiments, coupled with our increase in production by adding a third shift operation, we are confident of recording one of our strongest years in the country.”
In the commercial vehicle segment, market leader Tata Motors experienced a 1% decline in sales, with 31,216 units sold in July compared to the previous year. Industry experts attribute this drop primarily to fleet operators engaging in pre-buying ahead of the transition to the second phase of the BS-VI emission standards. They also emphasize that the overall macroeconomic conditions remain positive, which should support future sales of commercial vehicles.
In the two-wheeler segment, both Hero MotoCorp and Bajaj Auto reported a 14% decrease in sales volume, with 371,204 and 141,990 units sold, respectively. Hero MotoCorp attributed this decline to the inclement weather conditions in July, including heavy rains and floods in certain parts of the country. These factors led to crop damage and a significant reduction in customer footfall at dealerships.
