[TusharK]

Passenger vehicle sales in India crossed the 4 million units mark in 2023 – a new record. The industry registered a growth of 8% compared to over 3.79 million units in 2022.



The record sales were driven by the demand for SUVs, which now account for 49% of the market. The share of hatchbacks dropped by 5% to 30%, while that of sedans dropped from 11% to 9.4%. MUVs make up 8.7% of the market.

According to Maruti Suzuki, the average selling price (ASP) of vehicles has gradually increased over the past 4 years from Rs 8.2 lakh in FY2019-20 due to rising commodity prices, regulatory changes and consumer preferences. The ASP in 2023 was almost Rs 11.5 lakh, up from Rs 10.58 lakh in 2022.

SUVs account for about 60% of Hyundai India’s overall sales. The carmaker expects this to drop to around 52-53% in 2024. On the other hand, Tata Motors estimates the share of SUVs in overall sales to be around 50-55% in the next 2 years.

Source: ET Auto

Link to Team-BHP News

[GTO]

What a beautiful, powerful country . Proud of my India.

What's even more interesting is that, not only are car sales at an all-time high, but even the money has shifted. Conventional wisdom always said cheap cars & hatchbacks is where all the action in India is. Now however, the real demand, volumes & profits are coming from the 10+ lakh segments. Primarily SUVs, Crossovers & MPVs (sedans are dying).

As an example, take a look at November's car sales. The gross revenue & profits from 12000 Scorpios or Cretas is far greater than that from 16000 WagonR sales.

[pqr]

Originally Posted by TusharK

Passenger vehicle sales in India crossed the 4 million units mark in 2023 – a new record.

- 2023 full-year domestic wholesale is 41,00,258 units.
- Maruti Swift, due for generation change in 2024, is the best-selling product in 2023.

Originally Posted by GTO

As an example, take a look at November's car sales. The gross revenue & profits from 12000 Scorpios or Cretas is far greater than that from 16000 WagonR sales.

You are absolutely correct. Here is a quick estimate of revenue (Jan-Dec) based on fuel and variant mix after the exclusion of GST. 2nd ranked Wagon R doesn’t even appear in the top 10 revenue-earning products.

[yjagota]

Although this seems like good news, in my opinion, it definitely is not.

We are at a time where every new facelift or model comes with higher prices and lesser features, or both. Vehicles in India are generally the highest in prices and lowest in features, and not just in comparison to US/Europe, but even other Asian countries. There are hardly any real value for money options left in the market. And by opening our wallets and buying under-spec'd or overpriced vehicles, we as a group give even more confidence to our limited pool of vehicle manufacturers that they can overcharge the hell out of Indian consumers, and we will keep rewarding them with higher numbers in both sales and profits. And the limited group will not grow any sooner because unfortunately for many other brands, making them understand Indian mindset is like drawing blood from a stone.

The government is also doing its worse in taxes, because it means more revenue. Also as there is no public understanding and demand for new satellite towns and good public transportation, it does not have to contend with too high a demand for road infrastructure at one go. A big political win-win.

[fhdowntheline]

At the same time I am disappointed that the government did not enforce the mandated safety norms such as 6 airbags and ESC. While some manufacturers are doing this, there are glaring oddities. A VAG 2.0 car costing 15 lac can have 2 airbags while a Hyundai hatchback costing less than 10 lac has 6 airbags and ESC standard. Whoever saw THAT coming?

[RaghuVis]

Originally Posted by pqr

You are absolutely correct. Here is a quick estimate of revenue (Jan-Dec) based on fuel and variant mix after the exclusion of GST. 2nd ranked Wagon R doesn’t even appear in the top 10 revenue-earning products.

Attachment 2553159

W.O.W

Imagine someone came to you a few years back and said " In 4 years when India will have 4 million car sales in a year, It will be a TATA car costing an average 7-10L that will have the maximum revenue!"

You would have thought he was really hallucinating

PS: Imagine if the same person added one more line " Mark my words, Scorpio will generate more revenue that any Maruti or Toyota car by then"

[Satkaj]

Feel proud to be an Indian and of an age to be part of our growing economy.

I just read somewhere that Pakistan’s monthly car sales has dropped to 5k cars.

The major challenge is our road network and above all our traffic sense and poor rule obedience. This needs to be inline with all the other parameters.

[extreme_torque]

Originally Posted by Satkaj

Feel proud to be an Indian and of an age to be part of our growing economy.

I just read somewhere that Pakistan’s monthly car sales has dropped to 5k cars.

Given we were close to $3mn in the year 2016 already, this is hardly impressive if I am being honest. Why do we compare ourselves to Pakistan to feel good? Why not compare to China which has the same sized population as ours - they did 24mn cars in 2022 and are expected to do around 26mn this year. They also buy many more higher end expensive cars compared to India - for e.g Mercedes sold 754k car in China in 2022 compared to Mercedes in India which barely sold 16.5k units! To put it in perspective, Chinese consumers buy more Mercedes cars in a month than Mercedes sells in India in 4 years!

[Nikhildrao]

Originally Posted by extreme_torque

Given we were close to $3mn in the year 2016 already, this is hardly impressive if I am being honest. Why do we compare ourselves to Pakistan to feel good? Why not compare to China which has the same sized population as ours - they did 24mn cars in 2022 and are expected to do around 26mn this year. They also buy many more higher end expensive cars compared to India - for e.g Mercedes sold 754k car in China in 2022 compared to Mercedes in India which barely sold 16.5k units! To put it in perspective, Chinese consumers buy more Mercedes cars in a month than Mercedes sells in India in 4 years!

Why should we be proud of being a rabid consumer of luxury good? What is there to be proud in that? We already have saturated our infrastructure with the current vehicles. If we ever cross 10 million sales of cars, then it is a massive failure of improving public infrastructure.

[saleem_k]

Seems like COVID era is finally over for the India automobile industry.

So some statistics. Assuming our population at 140 crores, about .3% Indians bought new cars in 2023. That's about 1.3% households considering approximately 31 crore households. The analysis would have been better if we would have had the information that how many of these are first time buyers and how many were buying their second or third cars. Can't assume that most hatchback buyers were first timers or most SUV buyers were acquiring their 2nd/3rd cars.

Nevertheless, I hope our infrastructure and road networks get better. It's painful to see jams and holiday rush with such a small population owning cars. Imagine what would happen if 20% of the households will own cars in the near future.

[Bhodrolok]

Hardly anything to be proud of considering our population and pre pandemic numbers...the numbers are now back to pre pandemic levels however the quality of market remains subpar. Heck even a comparison to a country like Thailand shows where we actually are in terms of the vehicle mix as well as the poor road and traffic situation. We are still stuck with country specific models most of which are under powered, overpriced and just sub par vehicles.

[Satkaj]

I would not like to get in to debate and go off topic. But the point is any kind of industrial growth comes with environmental and economical challenges. We leave that discussion to other thread.

I am proud because:

1. India is galloping with new technology. For this forum it’s cars. We are part of this revolution where each day we are observing India trying to catch up with other countries like China.

2. No one can deny that 40L cars means, 40L countryman have fulfilled their desire of owning their dream car. Similar example can be given for many such industries like Real estate with record home purchases, D mat account openings, Mobile phone purchases and so on . When I observe a girl who working in my house as a maid now married aspiring to buy a car and a house makes me feel proud of this country now giving equal opportunity to all in very short span of time.This was not the case 20 yrs back. I am witness to both.

3. Not everything is done right for all, but a lot is changing for many which is validated by numbers of cars bought. And I am proud of it.

Being proud in the prospective as above. Does that mean I do not have any complaints? I have many, but When we see commercial wheel spinning, it spins for many associated with the industry and benefits all.

I rest my discussion here. My only wish is, any infrastructure planned should take non political way forward and with long term perspective.

[aniketi]

Congratulations India for achieving this milestone. I proudly contributed to this number as well

I read somewhere that Maruti crossed 2 million mark this year, that makes them having almost 50% market share. But every month they are around 42-44% only. Am I missing something here? Or Maruti doing some substantial exports?

[efgritesh]

Originally Posted by Satkaj

No one can deny that 40L cars means , 40L countryman have fulfilled their desire of owning their dream car.

I think with the kind of income distribution in India, this might be very concentrated set of conusmers, so this can still be challenged.

[CJ78]

Positive news for the Auto industry, hope there would be more spend on R&D by the existing manufacturers and new entrants coming up to bring in more competition (tired of facelifts)
However, we need good roads and rapid infra development to accommodate these new cars on the existing clogged roads.