Car Sales to Cross 2 Million Units in First Half of 2023 – News18

The passenger car sales figure in India is expected to cross the mark of two million in the first half of 2023. The analysis by ETIG concludes the newly launched models by various automotive brands in the country are the reason behind this historical sales data.

This half-year sales data from India is equivalent to full-year sales of many counties like Mexico, Australia, and Indonesia.

Shashank Srivastava, SEO, Marketing, and Sales from Maruti Suzuki India expects growth of 2.5 Percent this June. Which means sales of nearly 3,25,000 to 3,28,000 units. Last June the number of units sold was 3,21,000.

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“We expect the industry to end the June quarter at around 996,000 units. The fourth quarter of FY23 saw dispatches of 1,017,000 units,” said, Srivastava. “Both combined means the industry would breach the 2 million mark in the first half (January to June) of any year for the first time.”

Shashank Srivastava, also mentioned that the demand for new models has remained strong, leading to 8 percent bookings in June. Also, the inventory

of slow-moving models has been increased. “Our network stock on June 1 was 127,000 units. It’s likely to be lower by the month-end,” he said.

Overall the passenger car market in India is expected to grow 10 Percent Year-on-Year in the first half of 2023. This will be the third consecutive period to score double-digits on the sales sheet. Domestic Car sales grew 16 percent in the first half of 2022 and 30 Percent in the second half.

India: The Third Largest Car Market in 2023?

If this pace of growth continues in the second half of 2023. India could hold the position amongst the Top 3 Markets Globally in 2023. Domestic passenger car sales by 2030 are expected to touch 6-7 million units as per the internal estimates by leading car manufacturers in India.

“The industry outlook remains positive in the long term. But (growth) is likely to be lower than 10% in the second half due to the high base of last year,” said Hardeep Singh Brar, national head – of sales and marketing, at Kia India.

” It will also depend a lot on the customer response to multiple planned launches which are happening till the festival period.”

Atul Sood, VP of Sales and Strategic Marketing at Toyota Kirloskar, said the surge in rural markets of India is the key reason for this growth. “We also see aggressive penetration efforts by carmakers. Multiple launches across new segments are fuelling the demand,” he said.

India took more than 12 years to double its sales volume and to reach this level and merely 5 years to cross the milestone of 1 million in 2010. However, COVID-19, Increased Prices, and New Regulations caused some damage to the sales sheets of every manufacturer in the country.

In the last decade, the sales figure grew by a decent 4.18 percent, in line with the GDP growth of the country. This, however, was less than half the average for emerging markets globally. In 2023, for the first time, the number of units sold is expected to cross 3,00,00 units.