Key contributors to this growth include Hyundai Motor India Ltd (HMIL), Honda Cars India, and Volkswagen India. Hyundai exported 14,400 passenger vehicles (PVs) in May, a 31 percent increase from last year. Honda Cars' exports soared to 6,521 units from 587 units in May 2023. Volkswagen India's PV export volumes rose to 5,839 units from 3,222 units last year. Skoda Auto Volkswagen India (SAVWIPL) announced it has manufactured over 1.5 million vehicles at its Chakan facility since 2009, exporting over 30 percent of its production to 40 global markets.

Two-wheeler exports grew by 20 percent in May, reaching 312,418 units. Scooter exports increased by 25 percent to 50,844 units while motorcycle exports rose by 19.2 percent to 261,310 units.

Honda Motorcycle and Scooters India (HMSI) saw exports grow to 41,458 units from 18,249 units last year. TVS Motor's exports increased to 88,450 units from 66,605 units, and Bajaj Auto's exports grew to 117,142 units from 112,885 units.

While UV exports rose, passenger car exports fell by 19.6 percent, with sales decreasing by 11.1 percent and production down by 13 percent in May. Overall, domestic PV wholesale was up 4.2 percent in May, but retail sales declined by 1 percent. Companies such as Toyota Kirloskar Motors, Maruti Suzuki India, Volkswagen India, and Mahindra and Mahindra saw significant production increases.

Production: -

The total production of Passenger Vehicles, Three Wheelers, Two Wheelers, and Quadricycle in May 2024 was 24,55,637 units.

Domestic Sales: -

In May 2024, sales in the Passenger vehicle segment stood at 3,47,492 units, in Two-wheeler segment at 16,20,084 units and in Three-wheeler segment 55,763 units were sold. The Society of Indian Automobile Manufacturers (SIAM) commented that all the segments viz. Passenger Vehicles, Commercial Vehicles, Two-Wheelers and Three-Wheelers have posted growth in May 2024, compared to May 2023. Passenger Vehicles have only witnessed a moderate growth, primarily owing to a high base effect of the previous year. However, Two Wheelers and Three Wheelers posted growth in double digits. With expectations of above normal monsoon and continued emphasis on economic development by the new Government, the Auto Industry is optimistic of steady growth in 2024-25 as well.

According to SIAM, sales of passenger vehicles of May 2024 have been the highest ever in May again, although returning a moderate growth of 3.9 percent, compared to May 2023. Two-Wheelers posted a growth of 10.1 percent in May 2024, compared to last year, but are still lower than 2017-18 levels of the month of May. Domestic sales of Three-Wheelers in May 2024 grew by 14.7 percent compared to May 2023, posting the highest ever sales of May, surpassing the previous peak of year 2018-19.

April Retails:

In May 2024, the Indian Auto Retail sector achieved a modest 2.61 percent Y-o-Y growth. The two-wheeler (2W), three-wheeler (3W) and commercial vehicle (CV) segments grew by 2.5 percent, 20 percent and 4 percent while passenger vehicle (PV) and tractor (Trac) declined by 1 percent each Y-o-Y.

The two-wheeler segment grew by 2.5 percent Y-o-Y in May. Dealers reported supply constraints, lack of OEM marketing activities and impacts from extremely hot weather and elections.

The PV segment showed 1 percent Y-o-Y decline in May. Despite better supply, some pending bookings and discount schemes, the lack of new models, intense competition and poor marketing efforts by OEMs affected sales.

The CV segment showed a 4 percent Y-o-Y growth but an -8 percent M-o-M decline. Dealers reported that elections and extreme climatic conditions heavily impacted sales. Despite growth due to a low base from last year and increased bus orders, the industry faced challenges from wholesale pressures, government policy effects, and negative market sentiment. Additionally, good movement in market loads, cement, iron ore, and coal sectors contributed positively.

Bajaj Auto: -

India’s largest two-wheeler maker Bajaj Auto recorded a flat growth in sales at 3,55,323 units in May 2024 compared to 3,55,148 units sold in the same month last year.

The company's domestic sales declined 1 percent to 225,087 units while exports rose 3 percent to 130,236 units during the month.

The company saw 1 percent de-growth in sales of two-wheelers at 305,482 units in May 2024 while sales of commercial vehicles registered a growth of 08 percent at 49,841 units.

Taking into account the period April and May 2024, Bajaj Auto has recorded total sales at 7,43,579 units, an 8 percent growth over 6,86,426 units sold in the same two month period of 2023.

There has been positive growth both in terms of two wheeler domestic sales and exports and also where its commercial vehicle line-up is concerned.

Hero MotoCorp: -

Hero MotoCorp sales dropped 5 percent with 498,123 units sold in May 2024 while in May 2023 it sold 5 9,474 units. Hero Motocorp domestic sales Y-o-Y dip 7 percent at 479,450 in May 2024 against 508,309 in May 2023.

Domestic sales stood at 479,450 units in May, registering a year-on-year decline of 7 per cent against 508,309 units sold in May 2023. Exports, however, increased to 18,673 units in May, growing by a healthy 67 percent over 11,165 units sold in May 2023.

Motorcycle sales were the largest contributors to Hero’s volumes last month with 471,186 units sold. However, the numbers declined by 9.3 per cent against 519,474 units sold in May 2023. Scooter sales also witnessed a decline in numbers at 26,937 units sold last month, against 30,138 units sold during the same period last year, a year-on-year drop of 10 per cent.

The company has sold 10,31,708 units in the first two months (Apr-May '24) of FY’25, registering a growth of 12.6 percent over the corresponding months (Apr-May’23) when the company sold 915,581 units.

TVS motors: -

TVS Motor Company registered a sales growth of 12 percent increasing to 369,914 units in May 2024.

Total two-wheelers registered a growth of 13 percent with sales increasing to 359,590 units in May 2024. Domestic two-wheeler registered growth of 7 percent with sales increasing to 271,140 units in May 2024.

Motorcycle registered sales growth of 07 percent on year with sales increasing to 173,627 units in May 2024. Scooter sales registered a growth of 20 percent with sales increasing from 121,156 units in the month of May 2023 to 145,305 units in May 2024.

Electric vehicles grew by 4 percent with sales increasing to 18,674 units in May 2024.

The company's total exports grew by 27 percent with sales increasing to 96,966 units in May 2024. Two-wheeler exports grew by 33 percent with sales increasing to 88,450 units in May 2024. Three-wheeler of the company registered sales of 10,324 units in May 2024 as against 11,314 units in May 2023.

Maruti Suzuki India Limited (MSIL):

In May 2024, Maruti Suzuki India Limited sold a total of 174,551 units. Total sales in the month include domestic sales of 146,694 units, sales to other OEM of 10,490 units and exports of 17,367 units.

The company reported a marginal increase in domestic passenger vehicle sales, which rose to 1,44,002 units last month from 1,43,708 units in the same month last year.

Sales in the mini segment, which includes the Alto and S-Presso models, dropped to 9,902 units from 12,236 units in May 2023. In the compact car segment, sales decreased to 68,206 units from 71,419 units in the previous year.

The company’s utility vehicle sales increased to 54,204 units last month from 46,243 units in the same period last year.

In the van segment, sales were recorded at 10,960 units in May 2024, down from 12,818 units a year prior, while the light commercial vehicle Super Carry saw a slight decline to 2,692 units from 2,888 units in May 2023.

Maruti Suzuki India noted a decrease in exports, which fell to 17,367 units last month from 26,477 units in May 2023.

Tata Motors: -

Tata Motors Limited sales in the domestic & international market for May 2024 stood at 76,766 vehicles, compared to 74,973 units during May 2023.

Domestic sale of MH&ICV in May 2024, including trucks and buses, stood at 12,987 units, compared to 11,776 units in May 2023. Total sales for MH&ICV Domestic & International Business in May 2024, including trucks and buses, stood at 13,532 units compared to 12,292 units in May 2023.

Domestic sales stood at 75,173 units against the 73,448 units sold in May 2023, an increase of 2 percent.

Total domestic passenger vehicles (including EV) sales grew 2 percent where it stood at 47,075 units for May 2024 against 45,984 units of the same month previous year.

Outlook: -

The near-term outlook for the Automobile Retail is ‘cautiously optimistic’, influenced by a mix of positive and challenging factors across various segments. Post-election results are expected to bring stability and improve market sentiment, while the formation of a continued government could boost infrastructure projects and economic activities. Dealers are hopeful about better supplies and positive movement in key sectors like cement, coal and iron ore. The India Meteorological Department (IMD) has forecast above normal rains at 106 percent of the long-period average (LPA) this year, which is expected to enhance rural demand and support economic activities.

Uneven monsoon rains have previously impacted farm sector growth and while this year’s above-normal forecast is promising, it raises the risk of possible floods in some regions, potentially disrupting the market. Overall, while there is potential for growth with the new government formation and favourable economic conditions, addressing these challenges will be crucial for sustained improvement in the automotive market.

Tables and Charts:

Source: FADA