Automobile wholesales during the fiscal year ended March 2024 were in green for passenger vehicles (PVs) and two wheelers (2Ws). However, the dispatch numbers for certain commercial vehicle (CV) makers were in red. The following is a segment-wise report of vehicle dispatches during FY 2023-24.
Passenger Vehicles: Top three carmakers Maruti Suzuki, Hyundai, and Tata Motors said they have recorded their highest ever wholesales during FY24. Industry estimates suggest domestic PV sales recorded a growth of about 9% at 42.3 lakh units in FY24 when compared to 38.9 lakh units in FY23. This also withholds India’s position as the third largest PV market in the world.
Shashank Srivastava, Member Executive Committee, Maruti Suzuki said sales were driven by rural demand and SUVs. However, he expects the industry to see “single-digit” sales growth in the FY 2024- 25 owing to the high base effect of the previous year.
The share of SUVs in total sales now accounts for 50.4%, up from 43% in FY23. Hatchbacks now take up 28% share, a decline from about 34% in FY23. The share of sedans has dropped to 9%. In FY24, Tata Motors Passenger Vehicles (including EVs), posted its third consecutive year of highest ever sales with wholesales of 5,73,495 units, up 6% when compared to FY23.
Mr. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd. said, “Passenger vehicle sales in India are projected to set a record in FY24 with over 4.2 million units sold supported by strong growth in SUV sales (SUVs expected to surpass 50% of overall sales in FY24 vs 43% in FY23) and rising popularity of emission-friendly powertrains. With sales of cars powered by traditional fuels (petrol and diesel) flattening, almost the entire incremental volume growth of FY24 is expected from rising sales of emission-friendly powertrains. EV and CNG segments are projected to post robust growth of 70% and 55% respectively in FY24 vs FY23, on the back of multiple new launches, growing charging infrastructure and CNG stations, significantly lower operating costs and growing consciousness among customers to be environment friendly.
Going forward, we expect the demand for passenger cars to remain strong, although the high base effect may keep the growth rate in single digit. Customers’ rising preference for safe and green vehicles should result in double digit growth for sale of cars with emission-friendly powertrains supported by new launches and a stronger value proposition – emission-friendly, lower total cost of ownership and equipped with smarter features.”
Two Wheelers: Country’s largest selling two wheeler maker Hero MotoCorp recorded a 5% YoY growth in domestic dispatches during FY 2023-24.
The two-wheeler maker expects a double-digit revenue growth in FY25 “led by gain in the 125cc segment with the launch of Xtreme 125R, ramp-up of premium motorcycle portfolio and EV market share gain on the back of new launches”
Commercial Vehicles: Market leader Tata Motors has marked a drop of 4% at 3.78 lakh units in FY 2023-24 as against 3.93 lakh units.
Mr. Girish Wagh, Executive Director, Tata Motors Ltd. said, “FY24 began on a promising note for the commercial vehicles industry with the industry expecting to scale the previous volume peak achieved in FY19. The trend of YoY sales growth in volumes across most segments of H1FY24 moderated in H2 due to the combined effects of a high base, elections held across 5 states in Q3FY24 and upcoming General Elections in Q1FY25. The industry transitioned to BS6 Phase II emission norm and we used this opportunity to significantly enhance key attributes across our entire vehicle portfolio. Equipped with smarter technologies to deliver even better performance and value, the advancements have been well received by customers leading to overall sales of 3,96,000 units in FY24.
Going forward, with promising GDP growth outlook, incentives from government to improve productivity in both manufacturing and agriculture sectors, and continuing focus on infra related developmental projects, demand for commercial vehicles is expected to improve from the in latter half of Q2FY25. We remain cautiously optimistic about domestic demand while keeping a close watch on geopolitical developments, interest rates, fuel prices and inflation.”
