In August 2023, the country experienced a surge in passenger vehicle sales, reaching its highest level ever. This increase was primarily driven by a strong demand for sports utility vehicles (SUVs). According to the Society of Indian Automobile Manufacturers (SIAM), a total of 359,228 passenger vehicles were sold during this period, representing a 9.4% growth compared to the previous financial year’s sales of 328,376 units.
The demand for SUVs remained particularly high, with newer models introduced by Maruti Suzuki, MG Motor, and Hyundai in the utility vehicle segments gaining significant popularity. This trend reflects the shift in consumer preferences towards larger, more feature-rich cars.
Moreover, the sales of three-wheelers saw a notable increase of 69%, with 64,763 units sold in the same month. However, two-wheeler sales remained relatively stable at 1,566,694 units in August.
The mid-sized and premium two-wheeler segment experienced positive growth, attributed to changing consumer preferences and the competitive pricing of newer models resulting from the strong competition among original equipment manufacturers (OEMs).
Looking ahead, industry analyst Mr. Dhruv Mudaraddi from StoxBox anticipates a recovery in the demand for entry-level two-wheelers. This is expected to be driven by factors such as the advancing monsoon season and an increase in rural income, which could contribute to a rebound in sales in the coming months.
