Carmakers on track for record sales in FY2023

With wholesale numbers accelerating past 800,000 units in Q1, easing of chip supplies and a bountiful monsoon forecast, this fiscal could be the best yet for India Auto Inc. Ajit Dalvi does the number crunching.

- Ajit Dalvi

First quarter down, three more to go. With estimated sales of over 800,000 units in April-June 2022, the best yet since Q1 FY2019, the Indian passenger vehicle industry could surpass the previous best of 3.3 million units in FY2019. July kicks off Q2 with happy tidings of strong wholesales numbers from PV manufacturers, both in June and for the first quarter (AprilJune) of FY2023.

The dark clouds of the past two-odd years have lifted and the green shoots of recovery are there to be seen. It’s the cause-and-effect relationship – a marked easing of supply chain issues, which have vexed OEMs, and enhanced reliability in the availability of semiconductor chips means assembly lines are humming and dealer showrooms getting their share of what they – and the customer – want. What’s not to like? The June 2022 sales numbers, as announced by 10 of 16 PV manufacturers in the first few days of this month, indicate cumulative wholesales of 306,162 units, which is a strong 26 percent YOY growth. Importantly, this 10-OEM tally betters the total PV industry sales of 231,633 units in June 2021 by 32 percent.

Top five OEMs set the pace

Market leader Maruti Suzuki had a subdued June with sales of 122,685 units, down 1.28 percent on June 2021’s 124,280 units. One can pin this marginal decline to the ongoing shortage of electronic components, which has had an impact on production, and it getting ready to roll out the new Brezza. Another production speed-breaker was its annual maintenance shutdown in mid-June. This meant the company rolled out 140,478 units – 13.56 percent less than the 163,037 units produced in June 2021.