Entrepreneur Karan Asrani’s opinion on the automotive industry’s 21 per cent growth in retail sales for FY23


The auto industry has seen an upward trend as the sales of vehicles have witnessed drastic growth. Precisely, passenger vehicle retail sales saw a jump of 14 per cent year-on-year (YoY) in March. As per the Federation of Automobile Dealers Associations (FADA), the reason behind the growth of the PV segment is because of the improved supply of electronic components. 

All the vehicle categories – two-wheelers, three-wheelers, passenger vehicles and commercial vehicles witnessed double-digit growth except for tractors. However, the sales of two-wheeler vehicles were below the pre-pandemic levels.

The two-wheeler vehicle segment had total retail sales of 22.1 million for FY23 which was 12 per cent lower than the pre-covid level of 25 million because of an 18 per cent decline in the two-wheeler segment. On the other hand, the three-wheeler vehicles had record-high retail sales, thereby surpassing the previous high in March 2020.

Karan Asrani, owner of Mumbai’s Krishna Group of Industries said, “The two-wheeler segment has been hit badly with a decline in the two-wheeler EV market share. It has resulted in a steep dip in demand and bookings. I believe that the two-wheeler segment will take time to rebound.”

Furthermore, Karan is glad that the market for the PV segment is dominated by Maruti Suzuki followed by Tata Motors. Mahindra & Mahindra gained 1.40 per cent market share (YoY) at 32,196 units in March 2023 as compared to March 2022.

“It gives me immense pleasure that Mahindra & Mahindra and Tata Motors performed well in FY22-23. Thanks to the wonderful line-up and bookings that accelerated the sales of passenger vehicles in FY23”, said Karan. Interestingly, both Tata Motors and Mahindra & Mahindra sold the maximum SUVs throughout the year in India.

In a nutshell, FY22-23 was a fruitful year for the automotive industry which saw 21 per cent growth in retail sales from 1,83,27,326 units in FY22 to 2,21,50,222 units in FY23.  As per Karan Asrani, the sales of two-wheeler vehicles are expected to slightly grow across rural regions of the country in the coming year.