Automakers had sold 332,468 passenger vehicles a year ago in April 2023. Car sales had grown by 9.5% to 368,086 units a month before in March 2024. But even while the growth rate moderated last month, on a high base, in terms of absolute volumes April was the 16th straight month that automakers in the local market clocked best-ever monthly sales.
Partho Banerjee, senior executive officer (marketing and sales) at the country’s largest carmaker Maruti Suzuki said, “We have started this year on a high base. Compared to last year when supplies were disrupted due to the semi-conductor crisis, there is more stock in the network now. There is also some uncertainty due to the ongoing elections. Once the new government is formed, and policies are announced, there will be more certainty in the market. But overall, car sales are expected to grow in single-digits in FY25.”
Automakers in India reported bumper sales two straight years on back of pent-up demand post the pandemic, growing by 8.4% to its highest-ever mark at 4.22 million units in the financial year concluded March 31, 2024 and by 27% to 3.89 million units the previous financial year.
In Tarun Garg, Chief Operating Officer (COO), said, “Bookings and enquiries are at similar levels as last year. With pent-up demand now gone, sales are coming in from fresh enquiries and by converting them into bookings.”
At Maruti Suzuki, sales increased marginally to 137,952 units last month, compared to 137,320 vehicles sold in April 2023. Korean rival Hyundai too saw volumes increase by a modest 1% to 50,201 units in the month under review. Homegrown auto major Tata Motors saw sales go up by 2% to 47,984 units in the period under review. “Given the high base, this is good. We have to adjust to this new normal”, Garg informed, adding, “Demand continues to be driven by SUVs.”As many as 181,244 SUVs were sold in the domestic market last month, which is an increase of about 15%. With this the share of SUVs in total car sales rose to 53.6% from about 50.4% at the close of FY24. While SUVs are expected to continue to increase their share in the local market over the next couple of years, Banerjee said the upswing in two-wheeler sales will overtime also lead to a revival in the small car market.“Prices of small cars went up sharply due to regulatory changes, outpacing the growth in income of customers at the entry-level. We are now seeing a positive traction in two-wheeler sales. With an increase in income and affordability levels, we expect small car sales will revive by 2026/2027”, he informed.
Japanese auto major Toyota – which operates in a joint venture with the Kirloskar Group Toyota Kirloskar Motor (TKM) – saw sales increase by 32% to 20,494 units last month on back of robust demand for the Inniva Hycross and Toyota Fortuner. MG Motor India sold 4,485 vehicles, with 34% of these volumes coming in from EVs.
Two-wheeler sales remained strong, especially at the more premium end of the market. Royal Enfield posted a growth of 9% to sell 75,038 units in April 2024. B Govindarajan, CEO, Royal Enfield said, “We’ve already begun this year on a strong footing and have continued our double-digit growth and with a strong pipeline of products I am confident that we will be able to sustain and build further on our growth momentum.”
Chennai-based TVS Motor Company also saw domestic two-wheeler sales grow by 29% from 232,956 units in April 2023 to 301,449 units in April 2024.
Meanwhile, in the commercial vehicle segment, market leader Tata Motors saw sales rise by a third to 28,516 units last month. However, in the domestic CV market, Eicher branded trucks & buses recorded sales of 4898 units in April 2024 as compared to 6142 units in April 2023, representing a decline of 20.3%.