Passenger vehicle sales reached an impressive milestone, surpassing two million units in just six months. The continued surge in demand for utility vehicles during the festive season in September has been a major driving force behind this achievement.
In September, sales of cars, sedans, and utility vehicles reached a record high of 361,717 units, representing a 1.9% YoY increase on a strong base, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
Quarterly and half-yearly sales of passenger vehicles also hit new records, with 1,074,189 units and 2,070,163 units, respectively, in the periods ending in September, as reported by SIAM.
This remarkable growth can be largely attributed to the high demand for sports utility vehicles (SUVs), resulting in a series of successful new launches.
Festive push
This surge in sales has propelled the utility vehicle segment’s market share to an impressive 59.5% of total passenger vehicle sales for the September quarter. However, there has been some pressure on sales at the entry-level.
“Industry sales data shows that consumer preference for SUVs has dramatically increased. SUVs now account for almost half of the passenger vehicle market,” said Shashank Srivastava, Senior Executive Officer (Marketing & Sales) at Maruti Suzuki. Popular models like the Maruti Suzuki Brezza, Toyota Innova Hycross, and Hyundai Creta have seen significant demand, with 640,000 utility vehicles sold in the September quarter, according to SIAM data.
In contrast, sales of hatchbacks and sedans have remained subdued, accounting for only about 37% of total volumes, with 396,000 units sold during the quarter. “The passenger vehicle segment has achieved a significant milestone by surpassing two million unit sales in the first half of the current financial year,” said Rajesh Menon, Director General of SIAM.
In India, automakers mainly report wholesale dispatches from factories to showrooms rather than retail sales to customers. The September quarter witnessed a surge in dispatches as carmakers sought to build stocks ahead of the key festivals of Dussehra and Diwali. Industry executives are optimistic about achieving record retail sales during this festive season.
“The festive season has started off well with Onam in Kerala and Ganesh Chaturthi in Maharashtra. Bookings and enquiries remain healthy,” stated Maruti’s Srivastava. “With the easing of the semiconductor shortage, automakers have been able to increase production and build stocks for deliveries during Dussehra and Diwali,” he added.
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