In June, Maruti Suzuki India (MSI) and Hyundai experienced single-digit growth in their domestic sales, while the passenger vehicle segment as a whole achieved a milestone by surpassing 20 lakh units in sales during the first half of the year, marking the first time ever. Toyota Kirloskar Motor recorded double-digit growth in dispatches to dealers, but Kia witnessed a decline in wholesales last month. On the other hand, MG Motor India reported a double-digit increase in retail sales in June 2023 compared to the same month last year.
Specifically, Maruti Suzuki India, the country's largest carmaker, reported an 8% increase in domestic passenger vehicle sales, reaching 1,33,027 units in June, up from 1,22,685 units in the corresponding period last year.
However, sales of mini cars, which include models like Alto and S-Presso, saw a slight decline, falling to 14,054 units in comparison to 14,442 units sold a year ago.
Similarly, sales in the compact segment, comprising models like Swift, Celerio, Ignis, Baleno, and Dzire, experienced a decline of 17%, reaching 64,471 units compared to the 77,746 cars sold in June 2022. However, utility vehicle sales, including models like Brezza, Grand Vitara, and Ertiga, surged significantly, more than doubling to 43,404 units from the 18,860 vehicles sold in the same month of the previous year, according to MSI.
Shashank Srivastava, the Senior Executive Officer (Marketing and Sales) at MSI, stated that the automaker's growth in June outpaced the industry, resulting in a 2.4% increase in its overall market share, which now stands at 41%.
Regarding the overall passenger vehicle industry, the dispatches grew by 1.9% to 3,27,700 units from 3,21,600 units in the corresponding period last year, as per Srivastava. On the other hand, MSI dispatched 1,33,027 passenger vehicles last month, an 8% increase from the 1,22,685 units dispatched in June 2022.
Srivastava also mentioned that the domestic passenger vehicle segment achieved a remarkable milestone by crossing the 20 lakh sales-mark in the first half of the year, reflecting a growth of 10% over the 18.31 lakh units dispatched in the January-June period of 2022.
According to Srivastava, MSI's dispatches to dealers during the period reached 8,61,000 units, compared to 7,87,000 units in the corresponding period of the previous year.
He highlighted that the company's SUV market share surged to 21% in the April-June quarter of this fiscal year, a significant increase from the 8.5% market share recorded in the same period of the preceding fiscal year.
Srivastava expressed optimism about achieving approximately 25% market share in the segment, taking the top position, with the addition of new models like Jimny and Fronx by the end of the current financial year.
Regarding supply chain shortages, he mentioned that the situation is expected to improve in the current quarter. The company currently has a pending order backlog of 3.55 lakh units, he added.
When asked about the challenges ahead, Srivastava acknowledged that high-interest rates and the potential impact of an erratic monsoon were some of the factors closely monitored by the company.
Rival Hyundai Motor India recorded a 2% increase in domestic sales, reaching 50,001 units last month compared to 49,001 units in June 2022. HMIL COO Tarun Garg mentioned that all their products have garnered positive customer traction, with Verna, Creta, and Tucson achieving leadership positions in their respective segments during the first half of CY23.
Toyota Kirloskar Motor reported a total 19% increase in wholesales, reaching 19,608 units in June, up from 16,512 units in the corresponding period of the previous year. Of these, domestic dispatches accounted for 18,237 units, while overseas shipments totaled 1,371 units. TKM Vice President (Sales and Strategic Marketing) Atul Sood attributed the continued high acceptance from customers to the launch of Urban Cruiser Hyryder and Innova Hycross.
In contrast, Kia India experienced a 19% decline in domestic wholesales, with 19,391 units dispatched in June, compared to 24,024 units sent to dealers in June 2022.
"We have maintained steady performance with robust growth, even amidst the adjustments made to our manufacturing process to accommodate the development of the new Seltos this month," said Hardeep Singh Brar, National Head (Sales & Marketing) at Kia India.
Brar added that with the introduction of the new Seltos, the company aims to reclaim its position as one of the leading mid-SUV segment players and expects a significant surge in sales.
In the case of another automaker, MG Motor India, they reported a 14% increase in retail sales, reaching 5,125 units in June 2023, compared to 4,504 units sold in the same month last year.
The company acknowledged that supplies were disrupted due
to cyclone Biparjoy, but they anticipate a boost in customer demand following
the monsoon as India gears up for an extended festive season.
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