India’s auto industry is booming in the current fiscal year, with key manufacturers reporting increased sales of automobiles, motorcycles, and trucks due to increased demand in the country’s expanding economy.
According to executives in the auto industry, the introduction of new models, particularly in the SUV market, has increased sales of passenger cars, while sales of two-wheelers have increased due to increased rural incomes.
The increased level of economic activity in the economy is reflected in the rise in demand for commercial cars. This increases the need for commercial trucks to move products in the agricultural and manufacturing industries.
Leading manufacturer Tata Motors’ domestic and international commercial vehicle sales were 15,224 units in June 2024 compared to 14,770 units in June 2023; in Q1 FY25, they were 41,974 units compared to 36,577 units in Q1 FY24.
“Tata Motors Commercial Vehicles domestic sales at 87,615 units in Q1 FY25 were 7% higher than Q1 FY24 sales,” stated Girish Wagh, Executive Director, Tata Motors Ltd. Furthermore, June 2024 sales increased by 3% above May 2024 sales.
Prominent automobile manufacturer Maruti Suzuki announced a 3% YoY growth in domestic passenger vehicle sales, rising from 133,027 units in June 2023 to 137,160 units in June 2024. The market leader’s sales increased 1.2% to 419,114 units during the April–June quarter.
The SUV market has also helped Hyundai, Maruti Suzuki’s fiercest rival, expand sales. “We ended the first quarter of 2024 with a 5.68 percent YoY increase in overall sales. SUVs have made a significant contribution; they make up 66% of our domestic sales. With 91,348 units sold, an increase of 11% over the same period last year, the new Hyundai CRETA has been a major contributor to domestic H1 sales, according to Tarun Garg, chief operating officer of Hyundai Motor India Ltd.
In the same way, Mahindra & Mahindra sold 40,022 SUVs in the home market, representing a 23% increase, and 40,644 total vehicles, including exports. Twenty-five thousand commercial vehicles were sold domestically.
“We sold a total of 40,022 SUVs in June, a growth of 23 percent, and 69,397 total vehicles, an 11 percent growth over last year,” stated Veejay Nakra, President, Automotive Division, M&M Ltd. It has been a historic month for us as we have shipped out our 200,000th XUV700. Bolero Pik-Ups, a pioneer of the LCV market and category originator, was also honored with a 25-year anniversary.
Two-wheeler sales have increased as a result of the rural areas’ renewed desire. Major motorcycle manufacturer Bajaj Auto reported a 7% growth in domestic two-wheeler sales in June, totaling 177,207 units as opposed to 166,292 units in the same month last year. In addition, it reported a 7% growth in domestic sales from April to June, reaching 582,497 units, up from 542,931 units in the first quarter of FY24.
With sales of 518,799 units, Honda Motorcycle & Scooter India had a 60% YoY rise. 482,597 units were sold domestically, and 36,202 units were exported.
In June 2024, TVS Motor Company reported monthly sales of 333,646 units, a 5% YoY increase. From 304,401 units in June 2023 to 322,168 units in June 2024, its two-wheeler sales saw a 6% gain.
