Car Sales on 'Fleet' Street Accelerate 95% in FY23 , Maruti Suzuki Leads Market

Fleet Sales of Cars Nearly Double in FY23

Fleet sales of cars, including those to ride-hailing platforms such as Ola and Uber, nearly doubled in the last fiscal year, according to industry estimates. The surge in sales is expected to continue this year, with fleet sales projected to grow by over 40%, outpacing overall industry growth in the passenger vehicle segment.

Maruti Suzuki Leads Market in Fleet Sales

Market leader Maruti Suzuki is leading the market in fleet sales with an 83% share in India. Sales to the fleet segment already touched the pre-pandemic peak of about 113,000 units in the previous fiscal year, thanks in part to robust demand from the tourism sector. "Travel and tourism have been the biggest drivers of car sales to commercial operators," said Shashank Srivastava, senior executive director (marketing and sales) at Maruti.

Tata Motors Sees Rising Demand from Fleet Segment

Tata Motors is also seeing rising demand from the fleet segment, with managing director Shailesh Chandra confirming that the company has inked agreements to supply around 40,000 electric vehicles to ride-hailing platforms such as Uber and BluSmart in recent months. The company currently offers the X-Pres T EV sedan for commercial operators. Additionally, with the central and state governments looking to replace over half a million diesel and petrol cars with electric vehicles, fleet sales are expected to continue to grow in the mid-term.

Post-Pandemic Increase in Commuting and Travel Driving Fleet Sales

The surge in fleet sales is being driven by a post-pandemic increase in commuting and traveling as offices, schools, and colleges have reopened. Fleet sales grew by 30% year-on-year in FY22 and 95% in the last fiscal year after falling by 23% and 69% in FY20 and FY21, respectively. With the health scare of the pandemic receding, people have become more comfortable using shared mobility, leading to strong double-digit growth in fleet sales this fiscal year, according to Srivastava of Maruti.

Push for Electric Vehicles Boosting Fleet Sales

A push for electric vehicles is also boosting fleet sales, with the Indian government aiming to replace half a million diesel and petrol cars with EVs. The demand for EVs in the fleet segment is expected to continue to show promising growth as the government and corporates commit to sustainable mobility and take advantage of significant operational cost savings and a pleasant driving experience, according to Chandra of Tata Motors.

News Conclusion

Car sales to fleet operators, including app-based cab aggregators, have seen a remarkable growth of 95% in the last fiscal year and are expected to continue to outpace the overall industry growth in the coming months. With the reopening of schools, colleges, and offices, fleet sales are expected to grow by over 40% this financial year, driven by increasing commuting and travelling post-pandemic and the push for electric vehicles. Maruti Suzuki, with an 83% share in the fleet segment, has already touched the pre-pandemic peak in sales to the segment. With the government's objective of electrifying its fleet and corporates moving towards sustainable mobility, fleet sales are expected to continue showing promising growth in the mid-term.