Automakers Thrive as New Products Drive Demand in a Resilient Economy
In a positive sign for India’s auto industry, the world’s third-largest auto market, domestic sales have experienced sustained and robust growth, propelled by new product launches and an improving economic landscape. The latest data released by the Society of Indian Automobile Manufacturers (SIAM) reveals impressive figures, affirming the sector’s upward trajectory.
According to SIAM, domestic passenger vehicle sales in May 2023 reached an impressive 3,34,247 units, marking a substantial year-on-year growth of 13.54%. Comparatively, in May 2022, the sales figure stood at 2,94,392 units, illustrating a significant surge in demand for passenger vehicles.
The two-wheeler segment, a cornerstone of India’s transportation ecosystem, also demonstrated impressive growth, with domestic sales witnessing a robust 17.42% year-on-year increase in May, amounting to 1,471,550 units.
Meanwhile, three-wheeler sales experienced an exceptional surge, reaching 48,732 units in May 2023, a staggering 70.42% growth compared to the previous year’s figure of 28,595 units.
In total, the Indian automotive industry dispatched 18,08,686 vehicles across categories in May 2023, indicating a significant upswing compared to the 15,32,861 units recorded during the same period in the preceding year.
Vinod Aggarwal, President of SIAM, expressed optimism regarding the industry’s performance, stating, “All segments, including passenger vehicles, two-wheelers, and three-wheelers, have posted double-digit growth in May 2023 compared to May 2022. We anticipate this trend to continue, supported by the prevailing economic environment”.
Rajesh Menon, Director General at SIAM, emphasized the remarkable achievement in the passenger vehicle sector, revealing that May 2023 witnessed the highest sales ever recorded for the month, displaying a 13.50% growth over May 2022. Menon also noted that the two-wheeler segment experienced a notable growth of 17.40% in May 2023, although it has not yet reached the levels observed in 2016-17. He further highlighted the remarkable 70.4% growth in domestic sales of three-wheelers, cautioning that the current figure, while impressive, is still below the levels achieved in 2018-19.
To maintain this momentum, automakers are eagerly preparing to unveil an array of new products in both the passenger vehicle and two-wheeler segments. These upcoming launches are expected to drive further demand and solidify India’s position as a thriving force in the global auto market.
As the Indian automotive industry bounces back with vigor, these robust sales figures underscore the resilience and potential of this dynamic market. With a supportive economic environment and a wave of new product offerings, the future looks promising for India’s auto sector.
