Record high auto sales in fiscal 2024: SUVs and two-wheelers lead the charge
Sales Surge: Maruti Suzuki, Tata Motors, and Mahindra & Mahindra reported increased car sales in March 2024, ending the fiscal year on a high note. These monthly wholesale numbers are a key indicator of private consumption in India, with the auto sector contributing around 7% to the economy.SUV Success: The popularity of pricier sport utility vehicles (SUVs) continued into 2024, accounting for nearly 60% of total passenger vehicle sales in FY24.Entry-Level Evolution: While entry-level car sales struggled last year, automakers have offered higher discounts to stimulate demand. Product launches and improved rural demand for entry-level models have also boosted two-wheeler sales.Two-Wheeler Triumph: April witnessed a boost in two-wheeler sales. Bajaj Auto led the pack with a 17% year-on-year increase, followed closely by Hero Moto with a 34.7% year-on-year increase. TVS Motor and Royal Enfield also reported strong sales growth.Tractor Trends: The tractor industry experienced a slight slowdown, with M&M reporting a modest 2% increase in sales. Factors such as ongoing elections, low reservoir water levels, decreased haulage activities, and moderate Rabi output impacted the demand for tractors.Commercial Comeback: Commercial vehicle sales are on the rise. Ashok Leyland reported a 10% increase in total sales, and Tata Motors reported a significant 31% year-on-year increase in total CV sales.Passenger Vehicles Plateau: Passenger vehicle sales in India started the new fiscal year 2024-25 on a flat note, with 3.38 lakh units sold in April. This was due to the high base effect and muted demand due to the ongoing general elections. Major players Maruti Suzuki India, Hyundai, and Tata Motors reported marginal growth in their domestic wholesales.Maruti Suzuki’s Momentum: Maruti Suzuki India (MSI) has reported a 4.7% increase in total sales for April, with 1,68,089 units sold compared to 1,60,529 units in the same month the previous year. Domestic passenger vehicle sales remained steady, with 1,37,952 units sold last month, slightly up from 1,37,320 units in the year-ago period.Tata’s Triumph: Tata Motors said its total wholesales rose 11.5% year-on-year to 77,521 units last month as compared with 69,599 units in April 2023. The company’s total domestic dispatches rose 12% to 76,399 units last month as against 68,514 units in April 2023.Mahindra’s Milestone: Mahindra & Mahindra (M&M) reported a higher than estimated increase in sales. The total auto sales have seen a year-on-year (YoY) rise of 13%, reaching 70,471 units. The SUV segment continues to lead the auto sales, with an 18% YoY increase, amounting to 41,008 units.Hyundai’s High: Hyundai Motor India has reported a 9.5% year-on-year increase in total sales for April, with 63,701 units sold compared to 58,201 units in the same month the previous year. Domestic sales saw a modest 1% increase, with 50,201 units sold last month, up from 49,701 units in the year-ago period.Toyota’s Triumph: Toyota Kirloskar Motor has reported a 32% year-on-year increase in total sales for April, with 20,494 units sold compared to 15,510 units in the same month the previous year. The company’s domestic sales accounted for the majority of these sales, with 18,700 units sold last month. Meanwhile, exports totalled 1,794 units.Royal Enfield’s Elevation: Royal Enfield, the motorcycle manufacturer, has reported a 12% increase in total sales for April, with 81,870 units sold compared to 73,136 units in the same month the previous year. The company’s domestic sales saw a 9% rise, with 75,038 units sold last month, up from 68,881 units in the year-ago period.Hero’s Hike: Hero MotoCorp reported sales of 533,585 motorcycles and scooters in April 2024, a significant increase of 34.7% compared to April 2023, when it sold 396,000 units. This also represents a sequential growth of 9% over March 2024, during which the company sold 490,415 units.Future Forecast: The industry anticipates a revival in the market after June. The prediction of a normal monsoon is expected to boost rural sales, which has also been accelerated by the rapid development of road infrastructure and the rising aspirations of the consumers there.
