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

Auto sales data for April 2024 in India reveals a mixed picture, with passenger vehicle and commercial vehicle sales declining, while two-wheeler and tractor sales experienced growth. The contrasting trends suggest an overall economic momentum, as the auto sector is a key indicator of private consumption in India, accounting for over 50% of the country's economic growth.

Major automakers like Maruti Suzuki, Tata Motors, and Mahindra witnessed a decline in passenger vehicle sales, with the exception of Mahindra's marginal 3% growth. However, on a yearly basis, these companies have registered growth in the passenger vehicle segment, with Maruti Suzuki at 5%, Tata Motors at 2%, and Mahindra at 13%. In contrast, the two-wheeler segment saw positive growth, with companies like Hero, TVS, Bajaj, and Eicher registering 6-9% growth in April 2024.

TVS Motor Company, in particular, reported an impressive 25% year-over-year growth in total sales, from 306,224 units in April 2023 to 383,615 units in April 2024. The company's domestic two-wheeler sales grew by 29%, motorcycle sales by 24%, and scooter sales by 34%. TVS' electric vehicle sales under the government's new Electric Mobility Promotion Scheme (EMPS) increased by 61%, from 6,227 units to 17,403 units. Exports also grew by 12%, although three-wheeler sales declined by 21%.

Why this matters: The mixed performance in India's auto sales for April 2024 provides insights into the trajectory of the automotive sector and the country's overall economic growth. The surge in two-wheeler sales, driven by regional festivals and weddings, and the growth in SUV sales, bolstered by rising consumer incomes and easy financing options, indicate positive consumer sentiment in certain segments.

Maruti Suzuki India Limited, the leading passenger vehicle manufacturer, reported total sales of 1,68,089 units in April 2024, with 1,40,448 units sold in the domestic market and 5,481 units exported. While domestic passenger vehicle sales remained flat with a 0.46% year-over-year growth, the utility vehicle segment saw a significant increase, reaching 56,553 units. Maruti Suzuki's head of marketing and sales expects the hatchback segment to revive by 2026-2027, as sales of small cars have been subdued due to high inflation.

In the electric two-wheeler segment, Ola Electric reported strong sales with 34,000 registrations in April 2024, a 54% increase over the same period last year. The company maintained a dominant 52% market share and is set to expand its presence in the mass-market electric

Key Takeaways

• Auto sales in India showed mixed trends in April 2024: PV and CV sales declined, 2W and tractor sales grew.
• Top automakers like Maruti, Tata, Mahindra saw PV sales drop, except Mahindra's 3% growth; 2W sales grew 6-9%.
• TVS Motor reported 25% YoY growth in total sales, with EV sales up 61% under the EMPS scheme.
• Maruti's domestic PV sales were flat, but UV segment grew significantly; hatchback sales expected to revive by 2026-27.
• Ola Electric reported strong 2W EV sales with 34,000 registrations in April 2024, maintaining 52% market share.