News Mania desk/Agnibeena Ghosh/5th May 2024
Indian automakers, including Maruti Suzuki, Tata Motors, and TVS Motor, have recorded notable increases in sales of cars and two-wheelers compared to the same period last year, according to monthly data released by the companies on Wednesday.
Each month, automobile manufacturers in India disclose wholesale numbers, providing insights into vehicle sales to dealers. These figures serve as a crucial gauge of private consumption in the country, with the automotive sector contributing approximately 7% to India’s economy. Notably, Indian automakers achieved record sales volumes in fiscal 2024, and the upward trajectory is anticipated to persist in the current financial year.
The surge in two-wheeler sales in April can be attributed to regional festivals and weddings, which typically drive consumer spending. Concurrently, there has been a growing preference for pricier sport utility vehicles (SUVs) among car buyers. Analysts highlight rising consumer income levels and the availability of easy financing options with lower equated monthly instalments (EMIs) as key factors bolstering SUV sales.
Amit Hiranandani, lead analyst for the automobile sector at brokerage SMIFS, remarked on the factors fueling the SUV trend, emphasizing the role of increasing disposable incomes and attractive financing schemes. However, the sales of small cars have seen a dip, primarily due to elevated inflation levels rendering them unaffordable for their target demographic.
Partho Banerjee, Maruti’s head of marketing and sales, expressed optimism about the revival of the hatchback segment in the coming years. Despite the current subdued market for small cars, Banerjee anticipates a resurgence by the end of 2026 or 2027, driven by evolving consumer preferences and economic factors.
Here’s a snapshot of April’s sales figures for leading manufacturers:
– Tata Motors reported total April sales of 77,521 units, marking an 11.4% year-on-year increase.
– Maruti Suzuki recorded total sales of 168,089 units in April, reflecting a 4.7% year-on-year growth.
– Hyundai Motor India saw total sales of 63,701 units, indicating a 9.5% year-on-year rise.
– Toyota Kirloskar Motor reported total sales of 20,494 units in April, experiencing a significant 32% year-on-year increase.
– TVS Motor witnessed robust sales performance, with total sales reaching 383,615 units, representing a notable 25.3% year-on-year growth.
– Eicher Motors reported mixed results, with sales of motorcycles totaling 81,870 units, up by 11.9% year-on-year, while sales of trucks and buses stood at 5,377 units, reflecting a decline of 18.1% year-on-year.
– Escorts Kubota’s sales figures were not immediately available.
The diverse performance across segments underscores the dynamic nature of India’s automotive market, influenced by various economic, social, and seasonal factors. As Indian automakers navigate evolving consumer preferences and market dynamics, the industry remains poised for continued growth and innovation in the years ahead.
