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India's automotive industry experienced a landmark year in 2023, solidifying its position as the world's third-largest automobile market in terms of sales volume. According to a report by Rediffusion, the domestic car market reached unprecedented heights, selling a staggering 4,108,000 units, surpassing the previous record set in 2022.
SUVs emerged as the undisputed champions of the market, commanding a substantial 48.7 per cent share, signalling a shift in consumer preferences towards larger and more versatile vehicles. The surge in SUV sales marked an increase from the 42 per cent share recorded in the previous year, highlighting the growing demand for robust and spacious vehicles among Indian consumers.
Following closely behind SUVs were hatchbacks capturing 30 per cent of the market share while sedans and MPVs trailed with 9.4 per cent and 8.7 per cent respectively. The trend underscores the evolving landscape of the Indian automotive market with SUVs and crossovers overtaking traditional hatchbacks and sedans in popularity.
Maruti Suzuki continued to dominate the market with a stronghold on the top-10 list of bestselling vehicles. The Maruti Suzuki Swift witnessed 15 per cent year-on-year growth, solidifying its position as a favorite among Indian car buyers, with 2,03,469 units sold in 2023.
However, not all models experienced growth. The Maruti Suzuki Wagon R saw a decline in sales, dropping by 7 per cent compared to the previous year while the Maruti Suzuki Ertiga witnessed a 3 per cent decrease in sales.
Despite these fluctuations, Maruti Suzuki maintained its dominance with models like the Baleno and Brezza registering increases in sales by 4 per cent and 31 per cent, respectively, compared to 2022. The Maruti Suzuki Eeco also maintained steady growth boasting a 9 per cent year-on-year increase in sales.
Tata Motors showcased its prowess in the market with the Tata Nexon and Tata Punch recording slight increases in sales highlighting the company's growing presence in the competitive SUV segment. Hyundai also made its mark, with the Hyundai Creta experiencing a 12 per cent year-on-year growth in sales.
Industry executives remain optimistic about the prospects of the domestic car market in 2024, anticipating continued growth despite the high base established in 2023. The dominance of SUVs, MUVs and crossovers is expected to persist, signalling a fundamental shift in consumer preferences that automakers must adapt to remain competitive in the evolving landscape.
