Auto Sales 2023: Indian Auto Industry Crosses 40 Lakh Sales Milestone

The Indian passenger vehicle sales achieved a milestone in 2023. During the last calendar year, the passenger vehicle sales crossed the 40 lakh units mark for the first time. According to estimates, around 41 lakh vehicles were sold in 2023, a growth of around 8.2 per cent compared to nearly 38 lakh vehicles sold in 2022. 

Of these 41 lakh vehicles sold in 2023, Maruti Suzuki itself accounted for more than 20 lakh units. Maruti Suzuki’s exports last year amounted to 2.69 lakh units, its highest-ever annual exports. Hyundai India sold 7.65 lakh units in 2023, registering a 9 per cent growth compared to 2022 when it sold 7 lakh units. MG Motor India recorded annual sales of around 57,000 in 2023, an 18 per cent growth compared to 2022. Toyota Kirloskar Motors also saw its highest-ever annual sales in 2023, having sold more than 2.33 lakh units which is a 46 per cent growth compared to 2022. Tata Motors also saw its highest-ever annual sales, selling 5.53 lakh units in 2023.

Sales in the automotive sector saw a major downfall during the COVID-19 pandemic. A major reason was the shortage of semiconductor chips which is a crucial component in a modern vehicle. When the shortage started subsiding, India could bounce back better as it could produce cars faster because cars in our market require fewer chips than those in the international markets. 

However, another reason for the uptick in car sales can be attributed to improving economic factors in India. People have more disposable income and the pent-up demand from the pandemic helped the industry grow. Demand for SUVs and electric vehicles (EVs) also helped improve sales in the automotive industry. 

Commenting on the growth of the industry, Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said, “The industry is expected to post its highest ever sales in the calendar year 2023 (CY23), crossing the significant 4 million mark, supported by a strong supply situation, new nameplates launched in the SUV segment, and a robust demand during the longer festive period.”