According to data from the Federation of Motor Dealers Associations of India (FADA), passenger vehicle (PV) sales in India rose 8% year-on-year to 280,016 units in December 2022, which helped boost the country’s full-year passenger car sales by 16.35% year-on-year to 3.43 million units in 2022, the highest ever recorded. That was helped by pent-up demand and improved supply of semiconductor chips, as well as year-end discounts from automakers that boosted sales.
Among them, Indian consumers continued to have strong demand for SUVs, accounting for 42.3 percent of total passenger car sales.
In terms of car companies, Tata Motors and Kia Motors led the growth, while others such as Skoda and Toyota Kirloskar posted record annual sales in India. Six carmakers – Maruti Suzuki, Hyundai Motor, Tata Motors, Mahindra, Kia Motors and Toyota Kirloskar – account for 90 per cent of India’s passenger car market. In terms of electric vehicle sales, 999,949 electric vehicles were sold in India in 2022, an increase of 210% over the previous year. However, two – and three-wheeled vehicles dominated the sales. Only 37,792 electric four-wheelers were sold cumulatively, accounting for 4% of the total electric vehicle sales. Tata Motors, which has the largest EV portfolio, sold 30,284 EVs, accounting for 80% of the EV four-wheeler market, while MG sold 3,390 vehicles, accounting for 9% of the market.
“Overall, December looks positive for the auto industry, and we expect to see significant growth across all segments in the following January.” Manish Singhania, president of FADA.
However, India will require carmakers to comply with tougher fuel efficiency standards from April 2023, aimed at reducing carbon emissions. FADA warned that this would lead to further increases in vehicle prices, which would weaken subsequent car sales.
Post time: Jan-06-2023