In 2023, more than 41 lakh cars were purchased in India, marking a substantial growth of 8.3% in passenger vehicle sales from the previous year. This surge was primarily fueled by the popularity of SUV, which made up almost half of the vehicles sent from manufacturers to dealers across the country.
Interestingly, despite a rise in the average vehicle price to 11.5 lakh rupees in 2023 from 10.58 lakh rupees in 2022, major automotive players like Maruti Suzuki, Hyundai, Tata Motors, and Toyota Kirloskar Motor achieved record-breaking annual sales.
Maruti Suzuki, the market leader, crossed a remarkable milestone by exceeding 4 million wholesales for the first time in the industry's history. This surge accounted for an 8.3% increase compared to the previous year's wholesales of 37.92 lakh units.
Hyundai Motor India also had a significant year, achieving its highest domestic sales ever by surpassing six lakh units in 2023, reflecting a commendable 9% growth over the previous year. To keep up with increasing demands, they expanded their annual production capacity by an additional 50,000 units.
Tata Motors celebrated its third consecutive year of record sales, reaching around 5.53 lakh units in 2023. Despite industry-wide declines in the hatch segment, Tata Motors flourished in the compact SUV segment, contributing to their overall success.
Toyota Kirloskar Motor experienced its best-ever annual sales, recording a remarkable 46% growth in wholesales, surging to 2,33,346 units in 2023 from 1,60,364 units the year before. This increase spanned across their entire product portfolio, indicating rising customer interest in their car lineup.
MG Motor India reported an 18% rise in total retail sales, with electric vehicle models contributing to about 25% of their total sales. Notably, their flagship EV models, ZS and Comet, achieved around 20,000 units in sales.
Mahindra & Mahindra witnessed a substantial 24% surge in passenger vehicle sales in December 2023 compared to December 2022, despite facing supply challenges in certain parts. The company is actively collaborating with suppliers to address these challenges for the future.
The achievement of surpassing the 4 million sales mark was supported by improved supply situations, the launch of new SUV models, and sustained demand during longer festive periods. Overall, 2023 marked a year of impressive growth in India's automotive sector, characterized by increased demand, notable strides in electric vehicle adoption, and consistent growth in various car segments.