India's April 2024 Auto Sales Show Mixed Performance Amid Economic Momentum

India's auto sales for April 2024 displayed a mixed performance, with passenger vehicles and commercial vehicles experiencing a decline while two-wheelers and tractors showed growth. Despite the varied results, the overall data suggests continued economic momentum in the country.

Passenger vehicle sales saw a marginal increase to 338,000 units, with SUVs accounting for a larger share of 53.5%. However, major automakers like Maruti Suzuki, Tata Motors, and Mahindra registered declines in passenger vehicle sales. Mahindra was the only one to record a marginal 3% growth. On a yearly basis, Maruti Suzuki, Tata Motors, and Mahindra have seen increases of 5%, 2%, and 13% respectively in FY24 compared to FY23.

In contrast, the two-wheeler segment experienced positive growth, with companies like Hero, TVS, Bajaj, and Eicher registering increases ranging from 6% to 9% in April 2024 compared to March. TVS Motor Company reported an overall growth of 25% in sales, increasing from 306,224 units in April 2023 to 383,615 units in April 2024. The company's domestic two-wheeler sales grew by 29%, while its electric vehicle sales under the government's new Electric Mobility Promotion Scheme (EMPS) increased by 61%.

The commercial vehicles segment saw declines across major players like Eicher, Ashok Leyland, and Tata Motors. However, Tata Motors' commercial vehicle sales rose 11.4% year-over-year to 77,521 units, with domestic sales up 12% to 76,399 units. Total commercial vehicle sales jumped 31%.

In the tractor segment, Mahindra reported a 42% month-on-month increase in April, while Escorts registered a 12% decline. Escorts Kubota's total tractor sales stood at 7,515 units, down 1.2% year-on-year, but exports grew 10.9%.

The auto sector is a key indicator of private consumption in India, accounting for over 50% of the country's economic growth. The mixed performance in April 2024 reflects the ongoing economic momentum, with growth in certain segments offsetting the decline in others. The data provides insights into consumer preferences and the impact of government schemes on the automotive industry.

Maruti Suzuki, India's leading passenger vehicle manufacturer, reported total sales of 1,68,089 units in April 2024. While domestic passenger vehicle sales remained flat with a 0.46% year-over-year growth, the company saw a strong performance in the utility vehicle segment, with sales increasing from 36,754 units in April 2023 to 56,553 units in April 2024. Maruti Suzuki's head of marketing and sales expects the hatchback segment to revive by 2026-2027.

The growth in two-wheeler sales was driven by regional festivals and weddings, while the preference for pricier SUVs was attributed to rising consumer incomes and availability of easy financing options. However, small car sales remained subdued due to high inflation.

Industry experts anticipate the sales momentum to continue in the current financial year. "The auto sector is a key indicator of private consumption in India, with over 50% weightage in the country's economic growth calculation," stated an analyst from a leading research firm.

Key Takeaways

• Auto sales in India showed mixed performance in April 2024, with PVs and CVs declining, but 2-wheelers and tractors growing.
• Tata Motors, Maruti Suzuki, and Mahindra saw passenger vehicle sales decline, while Mahindra's grew marginally.
• Two-wheeler sales grew 6-9%, with TVS reporting 25% overall growth and 61% increase in EV sales.
• Commercial vehicle sales declined, except for Tata Motors which saw 11.4% year-over-year growth.
• The auto sector is a key indicator of India's economic growth, accounting for over 50% of the country's GDP.