Festive demand pushes car and SUV sales to historic high in September 2023, trend to continue

PuneNow, Oct 02, 2023: Driven by festive demand, domestic car sales in India soared to historic highs in September. The rollouts of new Sports Utility Vehicles (SUVs), such as the Honda Elevate, Citroen C3 Aircross, and the facelifted Tata Nexon, further propelled the momentum.

An estimated 3,63,733 vehicles were dispatched in September, marking the highest monthly sales in the domestic passenger vehicle (PV) market’s history.

This number outpaces the 3,60,700 units delivered in August and showcases a 2.4 percent year-on-year increase from September 2022. Between July and September 2023, sales touched an unprecedented 10,76,000 units. In the first half of the fiscal year, carmakers surpassed the two million sales mark for the first time, and from January to September, the industry broke past the three million sales mark.

Maruti Suzuki led the pack, with sales increasing by 2.8 percent in September, attributing much of this growth to SUV sales. Shashank Srivastava, Senior Executive Officer at Maruti Suzuki, highlighted the onset of the festive season and the improved availability of SUVs as major growth drivers. Other significant contributors included Hyundai Motor India, which reported its highest ever monthly sales, and Mahindra & Mahindra, registering an impressive 17 percent growth in SUV sales from last year.

Toyota Kirloskar Motor also experienced a surge with a 53 percent YoY increase, while MG Motor India posted a 31 percent growth. Conversely, Tata Motors observed a slight dip in domestic PV sales but reported a significant 57 percent growth in electric vehicle sales internationally.

Car manufacturers are optimistic about the coming months, aiming to maintain aggressive sales strategies throughout the festive season, especially with Navaratri beginning on October 14.