The utility vehicle (UV) category continues to drive growth in the passenger vehicle (PV) sector, comprising cars, UVs, and vans. The PV segment achieved its highest-ever Q1 wholesale figures with 995,974 units, a 9% YoY increase. UVs played a significant role in this achievement, accounting for 55% of PV sales in the first three months of FY2024, up from 51% in Q1 FY2023.
In contrast, hatchback and sedan sales saw a marginal 1% increase to 413,723 units. Passenger cars now hold a 41.53% market share, down from 45% a year ago. This 4% difference in market share represents the gains of UVs and the losses of passenger cars.
Several factors have contributed to the increased sales, including higher production for popular models with backlogs, improved semiconductor supplies, new market entrants, and positive customer and economic sentiment.
Maruti Suzuki, the market leader, achieved 12% growth with 414,055 units, driven by SUV demand. Car sales slightly declined by 0.60% YoY, while UVs surged by 56%, saving the company. Hyundai Motor India experienced 9.61% growth, driven by a shift towards SUVs and MPVs. Tata Motors and Mahindra & Mahindra also saw growth, while Kia India’s sales remained flat.
SIAM noted that although demand for entry-level PVs decreased, migration to sub-four-metre UVs is substantial, ensuring overall PV segment growth. The organization expressed confidence in the PV segment’s performance, citing rural demand based on positive factors like a promising monsoon and improved farm income.
