India registers over 4 million passenger vehicle sales in 2023

The record sales were driven by the demand for SUVs, which now account for 49% of the market.

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