New Delhi: Automobile wholesales (dispatches from the OEM factories to the dealerships) 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.
According to Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, PV sales during the year were supported by strong demand for SUV and rising popularity of emission-friendly powertrains. CNG-powered vehicles and EVs account for nearly 29% of the automaker’s overall PV sales.
“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, the maker of Nexon and Punch expects the demand for PVs to remain strong, although the “high base effect may keep the growth rate in single digit”.
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.
FY24 began on a promising note for the CV 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, said Girish Wagh, Executive Director, Tata Motors.
Going forward, Tata Motors expects the demand for CVs to improve from the latter half of Q2FY25, driven by “a promising GDP growth outlook, incentives from government to improve productivity in both manufacturing and agriculture sectors, and continuing focus on infra related developmental projects”.
“We remain cautiously optimistic about domestic demand while keeping a close watch on geopolitical developments, interest rates, fuel prices and inflation,” Wagh said.
