Passenger vehicle sales rise 11% YoY; Maruti Suzuki, Hyundai top sellers yet again: FADA

FADA passenger vehicle retail sales: The passenger vehicles segment in India saw a growth of 11 per cent YoY and 16 per cent when compared to the pre-covid month of February 2020, as per the latest data shared by the Federation of Automobile Dealers’ Association. The growth was mainly on the back of the launch of new models, continuously improving the supply of cars along with a healthy booking-to-cancellation ratio, and lastly, weddings.

On YoY basis, the total vehicle retail sale for February 2023 grew by 16%. All categories witnessed a double-digit growth with 2-Wheeler, 3-Wheeler, passenger vehicles, tractors, and commercial vehicles growing by 15%, 81%, 11%, 14%, and 17%, respectively.

“The month of February continued to witness a double-digit growth of 16% YoY, but was still down by -8%, when compared to the pre-covid month of February 2020. All categories also witnessed double-digit growth with 2-Wheeler, 3-Wheeler, Passenger Vehicle, Tractor, and Commercial Vehicles growing by 15%, 81%, 11%, 14%, and 17% respectively on a YoY basis. The Commercial Vehicle category has also shown robust growth by growing 17% YoY though it fell by -10% when compared to the pre-covid month of February’20. Walk-in inquiries improved during the month. Apart from this, demand has also increased due to changes in OBD norms which will see price hikes. On the government’s side, infrastructure spending has been healthy. This is also aiding better sales,” said Manish Raj Singhania, FADA President.

Top sellers in PV segment

Maruti Suzuki India and Hyundai Motor emerged as the top passenger vehicle sellers in February, according to the latest Federation of Automobile Dealers’ Association (FADA) data, though Hyundai Motor's market share dipped to 13.62% in February 2023 as compared to 14.95% in February 2022.

Maruti Suzuki sold 1.18 lakh passenger vehicle units and had a market share of 41.40% in February 2023. Hyundai Motor, on the other hand, sold 39,106 PV units and commanded a market share of 13.62% in the same period. In February 2022, Maruti Suzuki sold over 1.09 lakh units and Hyundai sold 38,688 units.

Tata Motors sold 38,965 PV units and had a market share of 13.57% as compared to 34,055 units in February 2022. It held a market share of 13.16% in February last year.

PV OEM	FEB'23	FEB' 22	FEB'23 Market Share	FEB'22 Market Share
Maruti Suzuki India	1,18,892	1,09,611	41.40%	42.36%
Hyundai Motor India	39,106	13.62%	38,688	14.95%
Tata Motors Ltd	38,965	13.57%	34,055	13.16%
Mahindra & Mahindra Ltd	29,356	10.22%	18,264	7.06%
Kia Motors India	19,554	6.81%	13,623	5.27%

Two-wheeler registrations rose 15 per cent last month to 12,67,233 units from 11,04,309 units in February 2022. Total commercial vehicle retail sales in February grew 17 per cent to 79,027 units, as compared to 67,391 units in the same month last year. It, however, remained 10 per cent down when compared to the pre-Covid month of February 2020. Three-wheeler retail sales witnessed a massive 81 per cent jump in registrations at 72,994 units, when compared with 40,224 units in February 2022. Similarly, tractor sales rose 14 per cent year-on-year to 68,988 units in February.

Commenting on the market trends, Singhania noted that multiple festivals in the near-term are expected to push sales. "On the flipside, India's chief economic advisor said urban demand recovery is taking place at a faster pace than rural. This, along with a sharp slowdown in private consumption expenditure to a two-year low, suggests a softening in household spending demand amid inflationary pressure, as post Covid pent-up demand starts to fade," he added.

Besides, the return of El Nino conditions in the Pacific could presage a weaker monsoon in India, resulting in lower output and higher prices impacting auto sales, Singhania said.

"While the month of March looks good, on a medium-term outlook, FADA remains cautious till the time a better monsoon forecast is not announced by IMD," he noted.

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