FY2022’s No. 3 utility player Tata Motors has taken No. 1 position in the April-June quarter with 87,943 units and 19% market share, ahead of Maruti Suzuki, Mahindra and Hyundai.
Tata Motors is on a roll and how. The company, which roared out of FY2022 with a sterling performance, has recorded sales of 131,940 passenger vehicles (PV) in the April-June 2022 quarter, up 103% on year-ago numbers. Powering this performance is its utility vehicle portfolio which has contributed 87,943 units or 66.65% of its PV sales in the first quarter of FY2023.
As per the Q1 FY2023 wholesales data released by SIAM earlier this month, Tata Motors has despatched a total of 87,943 UVs, which is a handsome 181% YoY increase over Q1 FY2022’s 31,303 units. Interestingly, when comparing the rest of the UV players’ Q1 numbers, Tata is in pole position at present. What’s more in the process, the carmaker has increased its UV market share to nearly 19% from 11% a year ago. In FY2022, Tata was the No. 3 UV OEM with sales of 226,151 units and a 15.19% UV market share.
The Nexon, which was the best-selling UV in India in FY2022 (124,130 units), not surprisingly, is also the power hitter in Q1 FY2023 with 42,380 units and accounts for 48% of Tata’s sales in April-June 2022. The Punch is the next Tata best-seller with 30,787 units (37%), Harrier with 8,594 units (9.77%) and the Safari with 6,182 units (7.02%). Where Tata has a huge first-mover advantage is with its Nexon EV, which is also the best-selling electric car in India. Not surprisngly, the Nexon
Tata Motors, as is known, is gunning for half-a-million PV sales this fiscal, with 10 percent of them being EVs. Its Q1 performance has laid the foundation for that score.
Slow going for Maruti but new Brezza, Grand Vitara have just rolled out
Maruti Suzuki India, the UV market leader in FY2022 with 290,701 units and a 19.52% market share, has wholesales of 80,852 units in Q1 FY2023, 7,091 units less than Tata Motors. This gives it a UV market share of 17.40%, down from the 21% it had a year ago in Q1 FY2022.
If Maruti’s numbers have slowed down, then that’s because of the production delays it has been facing due to the ongoing semiconductor supply chain issue, and also because it was readying to launch the new Brezza on June 30. The second-generation avatar of the game-changing concept SUV has all the makings of a winner, which should give Maruti a fresh charge. And it is has unveiled the all-new Grand Vitara today, having resurrected the brand. The Grand Vitara will be Maruti’s first full hybrid in India. Deliveries are expected to begin around the festive season.
Recently launched new Brezza should give Maruti Suzuki a fresh charge in the fiscal.
In Q1 FY2023, its best-seller was the popular Ertiga MPV with 37,538 units, followed by the Vitara Brezza (26,480 units), the XL6 (11,787 units) and the S-Cross (5,047). With the new S-Cross launched, expect the carmaker to jump back into the action soon.
Mahindra to pump up the volume
Utility vehicle major Mahindra & Mahindra is at third position in the first quarter of FY2023 with 75,420 units, which is a 77% YoY growth and gives it a market share of 16.23%. M&M had closed FY2022 with a UV share of 15% (223,682 units).
The company, like other OEMs, is also witnessing challenges in the form of inadequate chip supplies and in early July had a backlog of over 143,000 cumulative bookings for four models – the XUV700, XUV300, Thar and the Bolero. Bookings for the recently launched Scorpio N will open on July 30.
In Q1 FY2023, an estimated 24,337 Boleros have been despatched, along with nearly 16,000 XUV700s, 13,700-odd XUV300 and 10,000 Thars, among other models.
Creta: Hyundai’s bulwark
The No. 2 UV player of FY2022 (250,430 units and 16.82% market share) is currently in fourth place with sales of 71,123 UVs in the April to June 2022 period. While this is a 28% growth over year-ago figures, it is not enough to get it ahead of the triumvirate above it.
The Creta remains Hyundai’s bulwark in this segment with sales of 37,414 units, accounting for 52.60%, ahead of the compact Venue which, with 27,013 units, contributed 38% to the company’s total UV sales in Q1 FY2023.
The premium Alcazar is showing sustained demand and has averaged monthly sales of 2,113 units in the first quarter. The Kona, the sole electric Hyundai on offer in India, sold 293 units.
Growth outlook: Things can only get better
Look at the Q1 UV sales data table above and it's apparent that the surging demand for UVs in India is a democratising affair. The Top 12 OEMs in this list are all showing smart YoY growth and given that in Q1 FY2023, 51% of total PV sales comprised UVs – 464,558 units – keeping in line with the trend of every second car being sold in India is a utility vehicle, there is room for all given that what’s on offer ticks the right boxes.
Other than the top four UV OEMs in this list, Kia, Toyota, Renault, MG Motor, Nissan and the resurgent Skoda Auto India and Volkswagen India are all vying for a slice of the action and succeeding.
In FY2021, UV sales in India crossed a million units (or 10 lakh units) in a single year for the first time. In FY2022, the UV segment accounted for 48.51 percent of total PV sales. No surprise then that every vehicle manufacturer worth its wheels aims to expand its footprint in this booming segment. At present, there are 31 OEMs with UVs in India, selling approximately 101 models which cumulatively account for a staggering 666 variants available with a consumer-friendly mix of fuels, engines and transmissions.
With UVs eating into hatchback and sedan sales, FY2022 saw the market share for passenger cars drop sizeably to 48 percent compared to 57 percent in FY2021. UV market share rose sharply to 48.5 percent from 39 percent in FY2021. Meanwhile, van market share reduced marginally to 3.7 percent from 4 percent in FY2021.
Compare this with the 10-year ago scenario: in FY2013, UVs comprised 20% (553,660 units) of total PV sales of 2.68 million units, while cars (18,95,471) had 70.55% of the market with vans (237,298 units) having 8.83% share.
Given the pent-up demand in the market, the sizeable order backlog for top players like Maruti Suzuki, Hyundai, Tata Motors and Mahindra, the easing of the supply chain and chip issues and a continued surging boom for SUVs, it looks like the Indian PV industry could be driving towards a record fiscal and even cross the 3.4-million-units mark. And, 50% or 1.7 million of them could be UVs, which means it UV makers would be looking to notch a record high this fiscal.
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