Passenger vehicle sales grew 26.7 per cent in FY23 as the demand for SUVs surged and the shortage of chips eased, said the Society of Indian Automobile Manufacturers (SIAM) on Thursday.

In March, total passenger vehicle (PV) wholesales (dispatches) rose around 5 per cent year-on-year (y-o-y) to 2,92,030 units in the domestic market compared with 2,79,525 units in the corresponding month last year.

While the passenger car segment saw an 11 per cent y-o-y rise to 1,22,133 units last month (1,38,014), the sales in the utility vehicle segment rose by over 19 per cent to 1,57,881 units compared with 1,32,073 in March 2022, show data.

In the two-wheeler segment, total sales rose to 12,90,553 units (11,98,825) in March, indicating a jump of around 8 per cent. As many as 8,16,122 motorcycles and 4,37,617 scooters were sold last month.

FY23 report card

For the whole of FY23, two-wheeler wholesales grew to 1,58,62,087 units as against 1,35,70,008 units in FY22, SIAM said. Total vehicles wholesales across categories were higher at 2,12,04,162 units in the last fiscal compared with 1,76,17,606 units in FY22.

However, in terms of overall exports, the numbers declined by more than 15 per cent y-o-y to 47,61,487 units in FY23 compared with 56,17,359 units in the previous fiscal. Except PVs, exports of two-wheelers, three-wheelers and commercial vehicles reported a decline in FY23.

‘Supporting growth’

“The last financial year has been a year of consolidation, post Covid. The year started again with supply chain disruptions from the Ukraine conflict. However, with efficient management of supply chains and better availability of commodities, especially for electronics items, prices have moderated over the year, though it remains a concern. The PV segment posted the highest-ever domestic sales,” said Vinod Aggarwal, President, SIAM.

Commercial vehicles posted the second highest domestic sales and is close to the previous peak it recorded in 2018-19. Despite good growth in domestic sales in the three-wheeler segment, it is still below the 2010-11 levels. Two-wheeler domestic sales, too, are below the 2014-15 levels, said Aggarwal.

“Favourable policy initiatives — ranging from the impact of new PLI schemes, encouraging announcements in the Budget, forward-looking logistic and foreign trade policies and the recently announced gas pricing guidelines — would go a long way in supporting the growth of the industry,” he added.