The Indian automotive industry witnessed record-breaking car sales in October 2023, with 391,472 units sold, up 16.3% year-on-year. This is the highest ever monthly sales figure for the passenger vehicle (PV) segment in India, surpassing the previous record of 377,155 units sold in August 2021.
The strong sales performance in October was driven by a number of factors, including:
- Robust demand for SUVs, which accounted for over 50% of all PV sales in the month.
- Easing supply chain constraints, which have been hampering production in recent months.
- Inventory buildup in anticipation of the festive season.
Maruti Suzuki India, the country’s largest carmaker, led the sales growth in October, with domestic PV sales of 168,047 units, up 19.74% year-on-year. The company’s SUV segment performed particularly well, with sales of 59,147 units, up 91% year-on-year.
Other carmakers that posted strong sales growth in October include:
- Hyundai Motor India: 52,898 units, up 14.84% year-on-year
- Tata Motors: 43,368 units, up 7% year-on-year
- Mahindra & Mahindra: 30,875 units, up 36% year-on-year
SUV Segment Continues to Dominate
The SUV segment continued to dominate the Indian PV market in October 2023, accounting for over 50% of all sales. This is in line with the global trend of rising SUV demand, which is being driven by a number of factors, including:
- Higher ground clearance and better off-road capabilities, making SUVs more suitable for Indian roads.
- More spacious and comfortable interiors, making SUVs a popular choice for families.
- A wide range of SUV models available at different price points, making them accessible to a wider range of consumers.
Easing Supply Chain Constraints
Another factor that contributed to the strong sales performance in October 2023 was the easing of supply chain constraints. The global semiconductor shortage, which has been disrupting production in recent months, has shown signs of improvement. This has allowed automakers to increase production and meet the growing demand for vehicles.
Inventory Buildup in Anticipation of Festive Season
Automakers also built up inventory in anticipation of the festive season, which is typically a period of strong demand for vehicles. Diwali, the biggest Hindu festival, falls in October or November each year, and is often a time when people buy new vehicles.
Outlook for the Indian Automotive Industry
The outlook for the Indian automotive industry is positive, with analysts expecting sales to continue to grow in the coming months. The factors that are driving the current growth momentum are expected to remain in place, including:
- Robust demand for SUVs
- Easing supply chain constraints
- Festive season demand
In addition, the Indian government is taking steps to promote the growth of the automotive industry, such as investing in infrastructure and offering incentives for electric vehicle adoption.
The Indian automotive industry is on a roll, with car sales reaching record highs in October 2023. The SUV segment continues to dominate the market, and automakers are expecting sales to continue to grow in the coming months.