The Indian passenger vehicle (PV) industry is showing signs of recovery, with sales increasing by over 13% in May 2023 compared to May last year. This is a positive sign for the industry, struggling with semiconductor shortages and other supply chain disruptions for the past two years.
The easing of semiconductor supplies has allowed automakers to increase production and dispatches, leading to increased dealer network stock. The stock levels at dealerships have already reached pre-covid levels, and the waiting period has now been reduced for all models.
OEMs
The OEMs are now gearing up for new launches before the festive period. While Maruti Suzuki has already launched the Fronx & Jimny, Honda has already launched Elevate, Kia is preparing for the New Seltos launch, and Nexa with its new MPV. These new launches will further boost the PV industry in the coming months.
Trend
Going by the trend, the PV industry is anticipated to grow in single digits in FY2023-24. However, this outlook has risks, such as ongoing geopolitical tensions and rising inflation. If these risks materialize, it could dampen the PV industry’s growth prospects.
Here is a more detailed look at the sales performance of the top PV manufacturers in India in May 2023:
- Maruti Suzuki: Maruti Suzuki continued to be the market leader in May 2023, with sales of 1,43,708 units. This was a 15.5% YoY increase.
- Hyundai: Hyundai was the second-largest PV manufacturer in May 2023, selling 48,601 units. This was a 14.9% YoY increase.
- Tata Motors: Tata Motors was the third-largest PV manufacturer in May 2023, with sales of 45,884 units. This was a 5.9% YoY increase.
- Mahindra: Mahindra was the fourth-largest PV manufacturer in May 2023, selling 32,883 units. This was a 23.8% YoY increase.
The growth in the PV industry is being driven by several factors, including:
- The easing of semiconductor supplies, which has led to an increase in production.
- The rising disposable income of Indians makes them more willing to spend on cars.
- The government focuses on infrastructure development, creating jobs and boosting economic growth.
However, there are some challenges that the PV industry faces, such as:
- The rising cost of raw materials, which is putting pressure on margins.
- The increasing competition from new entrants, such as Tesla and Rivian.
- The need to invest in new technologies, such as electric vehicles and self-driving cars.
Despite these challenges, the PV industry is expected to grow in the coming years. The Indian government has set a target of selling 30% electric vehicles by 2030, significantly boosting the PV industry.
The PV industry is expected to grow in the coming months, driven by new launches and improving supply chain conditions. However, this outlook has risks, such as ongoing geopolitical tensions and rising inflation. If these risks materialize, it could dampen the PV industry’s growth prospects.
