Auto Sales In July 2023: Commercial Vehicles, and Tractors Lead Growth

Auto Sales In July 2023: Commercial Vehicles, and Tractors Lead Growth
Auto Sales In July 2023: Commercial Vehicles, and Tractors Lead Growth

by Tanushree Jaiswal Last Updated: Aug 24, 2023 - 06:00 pm 1k Views

The July auto sales in India show a mixed performance across different segments. Two-wheelers and passenger vehicles face slow demand, but commercial vehicles and tractors experience strong double-digit growth. Companies are adjusting to changing consumer preferences and market trends. With the monsoon continuing and the festive season nearing, stakeholders hold cautious optimism for the sector's future trajectory.

Here's an overview of how sales for India's automakers performed in the past month

In a recent release of July sales figures, the Indian automotive industry witnessed a diverse range of performances across various vehicle segments. While commercial vehicles and tractors displayed robust growth, the two-wheeler and passenger vehicle sectors faced sluggish demand, highlighting the complex dynamics within the market. 

Hero MotoCorp Misses Estimates with 12% Dip in Dispatches:

Hero MotoCorp, a prominent player in the two-wheeler market, reported a decline of 12% in dispatches, totaling 3.91 lakh units in July. The motorcycle segment experienced a significant setback, with sales plummeting by 14% to 3.60 lakh units. In contrast, scooter sales demonstrated resilience by soaring 26% to reach 30,718 units. On the domestic front, sales encountered a substantial drop of 14% to 3.71 lakh units. However, exports rose 35% to 20,106 units.

TVS Motor's Domestic Two-Wheeler Sales Lead Overall Growth:

TVS Motor's domestic two-wheeler sales outperformed expectations, marking a notable increase of 17% to reach 2.35 lakh units. Motorcycle sales saw a modest 2% growth, while scooter sales showcased a healthier rise of 5%. The overall sales figures for the company exhibited a 4% growth, totaling 3.26 lakh units. However, the export sector faced challenges, witnessing a decline of 20%.

Eicher Motors' Royal Enfield Sales Surge 32%:

Eicher Motors experienced a remarkable surge in total motorcycle sales, boasting a significant 32% rise, summing up to 73,117 units in July. The surge was propelled by the successful launch of the Hunter 350. A detailed analysis reveals that sales of models equipped with engines up to 350cc witnessed a substantial 39% increase, while models exceeding 350cc encountered a minor setback, with sales falling by 5%. In terms of exports, the company faced a dip of 22%, amounting to 7,055 units.

Ashok Leyland Records 11% Rise in Dispatches:

Ashok Leyland, a prominent name in the commercial vehicle segment, reported a notable 11% increase in dispatches, reaching 15,068 units in July. The surge was primarily attributed to the strong demand for heavy-duty vehicles. Within the commercial vehicle category, medium and heavy-duty sales stood out by surging 22% to 8,974 units, while light commercial vehicles faced a slight setback with a 3% decline to 5,233 units.

Maruti Suzuki Reports 3% Overall Sales Increase:

Maruti Suzuki, a leading passenger vehicle manufacturer, managed to achieve an overall sales increase of 3%, totaling 1.82 lakh units in July. The standout performer in this period was the utility vehicle segment, which witnessed an impressive 166% surge, with sales reaching 62,049 units. However, the mini and compact category faced a challenging scenario, encountering a substantial decline of 27% to 76,692 units.

M&M Achieves Record SUV Sales; Tractor Dispatches Grow:

Mahindra & Mahindra (M&M) reported a remarkable 29% increase in passenger vehicle dispatches, reaching 36,205 units in July. The strong surge was attributed to the robust demand for utility vehicles. Furthermore, M&M's domestic tractor sales displayed resilience, growing by 11%. This growth effectively offset the impact of a substantial 38% decline in exports.

Tata Motors Faces 4% Decline in CV Sales; PV Sales Remain Flat:

Tata Motors faced a slight setback in July, with its total dispatches experiencing a 1.4% decline, summing up to 80,633 units. The decline was particularly evident in the commercial vehicle sector, where sales faced a 4% drop. However, heavy-duty truck sales displayed promise, recording a notable 14% rise. In contrast, passenger vehicle sales remained relatively steady. While Electric passenger vehicle sales experienced a significant 53% surge, reaching a total of 6,329 units sold.

Hyundai's Exports Boost Overall Dispatches:

Hyundai Motor India demonstrated a mixed performance in July, with total dispatches witnessing a 4.5% rise to reach 66,701 units. This growth was significantly bolstered by a substantial 20% surge in exports. On the domestic front, Hyundai's sales experienced a more modest increase of 0.4%, totaling 50,701 units.

Eicher Motors' Commercial Vehicle Arm Sees Sales Decline:

Eicher Motors' subsidiary, VE Commercial Vehicles, reported a 1.8% decline in dispatches, reaching 5,877 units in July. This decline was primarily driven by reduced sales of light and medium-duty buses. On the domestic front, sales faced a slight 0.9% decline, amounting to 5,311 units, while exports witnessed a more notable setback with a 15% decline to 425 units.

Toyota Kirloskar Achieves Record Dispatches in July:

Toyota Kirloskar Motor achieved a significant milestone in July, recording its highest-ever monthly dispatches with a remarkable 11% year-on-year growth, totaling 21,911 units. The company's Vice President of sales and strategic marketing, Atul Sood, expressed confidence in the favorable demand sentiments and increased production capacity.

Bajaj Auto Faces Two-Wheeler Sales Decline:

Bajaj Auto encountered a challenging period in July, with its two-wheeler dispatches witnessing a notable 15% decline, amounting to 2.69 lakh units. The decline was observed across both domestic and overseas markets. However, three-wheeler sales in the domestic market managed to double, reaching 37,273 units, while exports of three-wheelers fell by 35% to 13,634 units.

Escorts Kubota Sees Incremental Growth:

Escorts Kubota Ltd., a significant player in the agricultural and construction equipment market, reported a 3.9% year-on-year rise in dispatches, totaling 5,570 units in July. This growth was attributed to the progress of the monsoon across the country. While domestic sales witnessed a healthy surge of 9.7%, exports experienced a decline of 38% to 409 units. The company anticipates a further demand pickup in the upcoming festive months, beginning in September.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


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