The Indian auto industry, known for its dynamism, exhibited intriguing trends in July 2023. This detailed report offers in-depth insights into the sales figures and growth dynamics across various vehicle categories, with a keen focus on both year-on-year (YoY) progress and month-on-month fluctuations.
Strong YoY Growth Across All Segments
July 2023 witnessed the Indian auto industry’s resilience as it posted a noteworthy 10% YoY growth, with total sales reaching 1.77 million units. This marked a significant upturn from July 2022’s 1.60 million units.
- Two-Wheelers: Leading the charge, the two-wheeler segment demonstrated an 8% YoY growth, highlighting its enduring popularity among Indian consumers.
- Three-Wheelers: The three-wheeler category, often used for last-mile transportation, stood out with an impressive 74% YoY growth. Notably, this segment also displayed a notable 9% increase compared to June 2023.
- Passenger Vehicles: Passenger vehicles experienced a commendable 4% YoY growth, with specific manufacturers making substantial gains in market share.
- Tractors: The agricultural sector witnessed robust growth, with tractor sales surging by 21% YoY. This underscores the pivotal role of this segment in India’s rural economy.
- Commercial Vehicles: Commercial vehicle sales recorded a modest 2% YoY growth, though sub-segments within this category exhibited varying trends.
While the YoY figures indicate overall growth, the month-on-month comparisons reveal a nuanced picture. In July 2023, four vehicle segments witnessed declines compared to June 2023:
- Two-Wheelers: Sales witnessed a 6% decline.
- Three-Wheelers: There was a 9% dip in sales.
- Passenger Vehicles: Sales were down by 4%.
- Tractors: Sales declined by 8%.
- Commercial Vehicles: A marginal 0.20% decrease was recorded.
These month-on-month declines suggest a short-term slowdown in the industry, potentially influenced by seasonal variations and evolving market dynamics.
Key Players and Market Share
- Two-Wheelers: Hero MotoCorp retained its leadership position with a 29.42% market share, although it slightly decreased from 31.85% a year ago. TVS Motor Co, Suzuki Motorcycle India, and Royal Enfield increased their market shares with strong YoY growth.
- Electric Two-Wheelers: Ola Electric and Ather Energy, both electric two-wheeler manufacturers, experienced remarkable YoY growth in sales, reflecting the escalating demand for electric mobility in India.
- Three-Wheelers: The three-wheeler segment, driven by high fuel prices, achieved its highest-ever monthly sales in July 2023. Electric three-wheelers, in particular, demonstrated a remarkable 59% YoY growth, comprising 49% of total sales.
- Passenger Vehicles: Maruti Suzuki, Hyundai Motor India, Tata Motors, Mahindra & Mahindra, and Toyota Kirloskar Motor exhibited growth in market share, with Maruti Suzuki reaching an impressive 41.39% share due to robust sales of new SUV models.
- Commercial Vehicles: Tata Motors, Mahindra & Mahindra, and Ashok Leyland were prominent players in the commercial vehicle segment, with Ashok Leyland increasing its market share to 16%.
EV Sales Surge Over the Past Decade
The growth of EVs in India has been nothing short of remarkable. Over the last ten years, the Indian EV industry has witnessed a staggering 42,796% increase in sales. From a modest 2,389 units in the past, the industry achieved a milestone of 1,024,795 EVs sold in 2022, surpassing one million units for the first time. With 886,959 units sold between January and August 12, 2023, this year’s figures are already at an impressive 86% of the previous year’s record, hinting at a potential total of 1.4 million units by the end of 2023.
Key States Leading in EV Ownership
Several states in India have emerged as key contributors to the EV revolution. The top nine states, each with more than 100,000 registered EVs, collectively account for a remarkable 75.40% of the total EVs in the country. Uttar Pradesh (UP) and Maharashtra lead the pack in terms of EV ownership.
- Uttar Pradesh (UP): With a staggering 574,967 registered EVs, UP commands a significant 20% share of the total EV parc in India. The state’s leadership can be attributed to its large number of electric two- and three-wheelers, along with strong government support.
- Maharashtra: Ranked second in EV ownership, Maharashtra boasts 305,006 registered EVs, capturing a 10.77% share of the Indian EV market. Maharashtra’s strength lies in electric passenger cars and SUVs, positioning it among the top states in electric commercial vehicles.
- Karnataka: The southern state of Karnataka ranks third with 248,747 registered EVs, accounting for 8.78% of total EV ownership. Karnataka has witnessed significant growth, thanks to the presence of leading two-wheeler OEMs and electric vehicle manufacturing operations.
- Delhi: The capital city has 233,212 registered EVs, securing an 8.23% share of the Indian EV market. Delhi has been proactive in promoting electric mobility through policies and incentives.
- Rajasthan: In fifth place, Rajasthan boasts 180,670 registered EVs, contributing to a 6.38% share of the Indian EV market.
Regional Trends in EV Adoption
The EV revolution in India is not limited to specific states; it’s a regional phenomenon. Different zones across the country are witnessing varying levels of EV adoption:
- Central India: Dominating the central zone, Uttar Pradesh alone contributes significantly to the zone’s total of 775,457 registered EVs, with a 27% share of the Indian EV market. The central zone is characterized by a strong demand for electric three-wheelers and last-mile mobility vehicles.
- Southern India: Southern states like Karnataka, Tamil Nadu, and Andhra Pradesh, home to major two-wheeler OEMs and EV manufacturing operations, account for 592,914 EVs, representing 21% of the Indian EV market.
- Northern India: The northern zone, with 540,215 registered EVs, claims a 19% share of the overall market. Delhi, Rajasthan, Haryana, and Punjab are prominent players in this region and are hubs for three-wheelers and e-two-wheeler manufacturing.
- Western India: Comprising states like Maharashtra and Gujarat, the western zone boasts 456,385 registered EVs, holding a 16% share in the Indian EV market. Maharashtra is a significant contributor to this zone, being a leader in electric passenger vehicles and commercial vehicles.
- Eastern India: The eastern zone, led by Bihar and supported by West Bengal, Odisha, and Jharkhand, has 328,762 registered EVs.
- North-East India: The North-East region, consisting of eight states, records 136,832 EV users, with Assam leading the pack.
Challenges and Future Outlook
While the industry faced challenges such as heavy monsoons and rising fuel prices, which influenced consumer preferences, there was a noticeable shift towards electric vehicles. Nevertheless, infrastructure projects provided a glimmer of hope for the commercial vehicle segment, and the industry’s overall resilience is a positive sign for the future.
The data from July 2023 paints a dynamic picture of the Indian automotive industry, showcasing both growth and short-term fluctuations. Electric vehicles, particularly in the three-wheeler segment, are gaining substantial momentum, indicating a significant shift in market trends. As the industry navigates challenges and embraces innovation, it remains poised for further evolution in the coming months. Stay tuned for more updates on India’s ever-evolving auto landscape, which promises exciting developments in the near future.