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New Delhi: Passenger Vehicles (PVs) set their highest ever domestic sales of 38.9 lakh units during 2022-23 due to increased post-Covid demand, reduced supply chain constraints, increased demand for SUV-style vehicles and new product launches growing at a CAGR of 3.6% and has crossed the previous peak of 33.7 Lakhs in 2018-19.
Now, SUV-style vehicles make up 43% of the total PV market in India.
According to Vinod Agarwal, President, Society of Indian Automobile Manufacturers (SIAM), “2022-23 has been a year of consolidation after Covid. The year again began with supply chain disruptions from the Ukraine conflict. However, with efficient management of supply chains and better availability of goods, especially for electronics items, prices have moderated year on year, though it remains a concern.”
Rohan Kanwar Gupta, Vice President and Sector Head – Corporate Ratings, ICRA Ltd. said, “Retail sales in the industry remain stable supported by healthy underlying demand. After some moderation in February 2023, the BS-VI emission norms from April 1, 2023 Steady demand with pre-purchase limits ahead of the implementation of the second phase of the scheme acted as a headwind for demand in March 2023. Aided by these factors, the industry volume in FY2023 is expected to be around 3.9 NN units. reached the highest level.
Indian OEM share close to 25%, Japanese below 50%
According to the latest SIAM data, top three carmakers Maruti Suzuki, Hyundai, Tata Motors reported their best ever sales performance during the financial year ending March 2023. Interestingly, the share of Indian carmakers (Tata Motors, Mahindra & Mahindra) came close. to capture nearly a quarter of industry sales while Japanese OEMs (Maruti Suzuki, Toyota, Honda, Nissan) registered a decline of 50%.
During the financial year 2021-22, Indian OEMs grabbed around 20% market share as against 52% of Japanese.
South Korean OEMs (Hyundai, Kia) maintained their share at a little over 21%.
Market leaders Maruti, Hyundai losers; Tata, Mahindra, Kia lead
The country’s largest carmaker Maruti Suzuki, which used to capture more than half of the domestic Indian car market, has seen its share shrink by 10% in just three years. The company, which managed to maintain its 51% stake till 2019-20, fell to 48% the next year, followed by 44% in 2021-22 and finally 41% during the year ending March 2023. It may be noted that new players like Kia and MG entered the Indian market in 2019-20.
However, the Japanese carmaker has recently entered the mid-size SUV segment with its Grand Vitara and also unveiled the new Franks and Jimny. With this, it aims to become the top seller in the SUV segment and is expected to increase its overall market share to 45% in 2023-24.
Hyundai, which maintained its number two position during the financial year, slipped closer to Tata Motors. The Creta maker was ahead of the latter by around 30,000 units. Its market share reached its lowest level in the last 5 years at 14.5%. In 2020-21, it was 17.4%. However, the company is eyeing new products with technology rich features for 2023-24.
On the other hand, the maker of Nexon has more than doubled its share during the year ending March 2023 from 6.8% in 2018-19 to 13.9%. This comes on the back of growth in its EV portfolio and SUV-styled vehicles.
Mahindra & Mahindra is also improving its market share game with demand for its new models including Scorpio, XUV700 and Thar. Its share in the domestic market was around 7% during the last four years and is now expected to exceed 9% during 2022-23.
South Korean automaker Kia, which made its entry into the Indian market in 2019, holds around 7% share in the domestic car industry. Back in 1998, when Hyundai entered the India market, it also managed to become a household name by garnering 10% share in the first two years of its operations.
Honda, which used to grab over 5% of the Indian market share in 2018-19, is set to shrink to around 2% by 2022-23. However, the company is all set to enter the best selling SUV market in India this year. Last year, it also introduced a hybrid version of its flagship City sedan.
Nissan, which has less than 1% market share, will stop production and sale of its Datsun brand vehicles in India during April 2022, after reviving it in the country in 2013.
current challenges
Sales of the entry-level category continue to decline due to changing consumer demand trends, new regulatory norms and rising cost of vehicle acquisition. Compared to 2016-17, when sales in the segment stood at 5.83 lakh units, mini car sales declined by 57% to 2.52 lakh units.
Small car sales leader Maruti has discontinued the production of Alto 800 hatchback this year.
Earlier, Hyundai also revamped its business strategy to focus on SUVs and sedans as it pulled the plug on the once popular Santro.
Even though supply chain disruptions have improved, semiconductor shortages have not been completely eliminated. Automakers expect this to continue for some more time.
export
Passenger vehicle exports in the country crossed the figure of 65 lakh units after three years in 2022-23. Maruti Suzuki, the market leader in the domestic segment, also secured the first position in the export of cars from India. The company which exported 2.55 lakh vehicles to about 100 countries in 2022-23. Africa, Latin America, Asia and the Middle East are its important markets.
Other top PV exporters in the country include Hyundai which shipped 1.53 lakh units, Kia which shipped 85,000 units and Nissan which shipped 60,000 units.
However, the exports of the industry during the year 2022-23 were still lower as compared to 2016-17 when it stood at 7.59 lakh units.
Outlook
Keeping in mind the high base of last year, experts project a healthy single digit growth for 2023-24.
Rohan Kanwar Gupta, Vice President & Sector Head – Corporate Ratings, ICRA Ltd. said, “Going forward, healthy replacement demand, new model launches and adequate financing availability are expected to help industry volumes grow by 6-9% in FY2024. is likely to. However, increasing cost of ownership (due to increase in vehicle prices and repo rates) continues to be a major constraint for the industry.
“Additionally, the performance of the southwest monsoon, and its impact on rural demand, remains watchable amid concerns regarding the occurrence of El Nino phenomenon. The availability of semiconductor chips will also remain critical to support the desired production levels of OEMs, with new capacities likely to come on board only by the end of CY2023,” he added.
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This news is auto-generated through an RSS feed. We don’t have any command over it. News source: Multiple Agencies: Autocar India, hindustantimes, economic times, autonews
