Auto Wholesales Update – September 2023

HeroMotocorp Sells 5.36 Lakh units on Sept 23 – How did others perform?

With the festive season round the corner, in September 2023, India’s automotive industry experienced an outstanding growth in its monthly sales numbers. Factors like improved chip availability for car production, and a strong demand for SUVs also led to the growth. Below is a detailed analysis. 

Passenger Vehicles

In September 2023, passenger vehicles sales in India reached a record high of 363,733 units, which is up by 2.4% compared to September 2022. This increase is because of the festival season, improved availability of computer chips for car production, and high demand for SUVs. Car manufacturers made sure their dealers had enough popular models for the festive season from Navratri to Diwali. However, the basic car segment didn’t do well. In the first half of the fiscal year 2024, car sales in India crossed 2 million units, showing a 6.5% increase and on track to reach over 4 million units for the year.

Two Wheelers

Motorcycle and scooter sales grew slightly due to good monsoon, higher income, and other positive economic factors. People started buying basic motorcycles again due to new models at attractive prices and better financing options. But the trend is still towards bigger motorcycles (>125cc). We expect more growth during the festival season. Exports improved except for Eicher Motors, which had trouble with its new models in foreign markets.

Commercial Vehicles

Truck sales increased by 12% in September 2023 as compared to last year, as there’s more demand for transporting goods despite high rates. Big trucks (M&HCV) did well because people are replacing old vehicles and need cleaner ones. Small trucks (LCV) also improved because businesses are investing in better logistics. Buses did very well because schools, public transport, and private fleets needed more of them. Exports were mixed, with buses doing better than overall sales. We expect truck sales to keep growing due to government infrastructure projects and e-commerce. Rural areas and good rainfall will help too.

Tractors

Tractor sales went down by a lot because of bad and late rains. But now, with better rains in September, farmers are likely to buy more tractors for the next planting season in mid-November. Farmers are getting better prices for their crops, and the costs of farming are going down, so tractor demand should go up.