In FY24, Maruti Suzuki exported 280,000 cars, including models like the Swift Dzire, S-Presso, Baleno, and Swift, to markets such as South Africa, Saudi Arabia, Chile, Mexico, and the Philippines. Hyundai also exported sedans like Verna and Aura, along with the Grand i10Nios, to various destinations, including South Africa, Saudi Arabia, Mexico, Chile, and Peru. Executives from Maruti and Hyundai have reported robust demand for these smaller models overseas and anticipate this trend to persist, with the potential for resurgence in demand within India as well. Despite the prevailing trend favouring larger vehicles, automakers remain hopeful about the revival of the small car segment, citing a potential resurgence driven by factors like the rebound in the two-wheeler market and anticipated improvements in affordability by the end of 2026 or 2027, despite challenges posed by rising hatchback prices due to safety and emissions regulations.

Production: -

The total production of Passenger Vehicles, Three Wheelers, Two Wheelers, and Quadricycle in April 2024 was 23,58,041 units.

Domestic Sales: -

In April 2024, sales in the Passenger vehicle segment stood at 3,35,629 units, in Two-wheeler segment at 17,51,393 units and in Three-wheeler segment 49,116 units were sold. The Society of Indian Automobile Manufacturers (SIAM) commented that passenger Vehicles continues the highest ever monthly sales trend with 3.36 Lakh units, though with a marginal growth of 1.3 percent, in the month of April 2024, as compared to April 2023. Continuing with the trends of Q4 of 2023-24, Two-Wheelers reported significant growth of 30.8 percent in April 2024, compared to April 2023, posting sales of about 17.5 lakh units while the Three-Wheeler segment also reported sales of about 0.49 Lakh units, with a growth of 14.5 percent in April 2024, compared to April 2023.

According to SIAM, year 2024-25 has started on a reasonably good note for the Auto industry, as all the segments have posted growth in April 2024, compared to April 2023, driven by positive consumer sentiments and festivities in this month. Above normal monsoon rainfall, policy continuity post-elections and Government’s push on manufacturing and infrastructure would propel the overall economic growth which would help in continuing the Auto sector’s growth trajectory.

April Retails:

The Automobile retail in April achieved a growth of 27 percent Y-o-Y, with the combined March-April period showing a 14 percent Y-o-Y increase.

The Two-wheeler (2W) segment was up by 33 percent on year in April. The 2W segment saw notable growth due to improved supply and the increasing demand for 125cc models. Positive market sentiments, bolstered by stable fuel prices, a favourable monsoon outlook, festive demand and the marriage season, contributed to this rise. New model launches also helped drive growth, despite some delays in supply.

Passenger vehicle segment achieved a 16 percent Y-o-Y growth in April. PV segment growth was supported by enhanced model availability and favourable market sentiments, particularly around festive events. Despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustained growth. Additionally, the lack of new models in some portfolios impacted market traction.

The CV segment showed modest 2 percent Y-o-Y growth and a 0.6 percent M-o-M decline, indicating varied market conditions. Positive momentum was found in bulk and corporate deals and school bus demand, though elections dampened sentiment, with customers delaying expansion plans.

Three-wheelers segment registered a growth of 9 percent in April and tractors sales grew by 1% Y-o-Y.

Bajaj Auto: -

India’s largest two-wheeler maker Bajaj Auto recorded a 17 percent growth in sales at 3,88,256 units in April 2024 compared to the same month last year.

The company's domestic sales recorded a 17 percent increase at 2,49,083 units while exports rose 18 percent to 1,39,173 units during the month.

The company achieved 19 percent growth in sales of two-wheelers at 3,41,789 units in April 2024 while sales of commercial vehicles registered a growth of 7 percent at 46,467 units.

Bajaj Auto reported a 35 percent year-on-year (Y-o-Y) rise in net profit at Rs 1,936 crore for the March quarter compared with Rs 1,433 crore in the same quarter last year. Revenue from operations for the quarter rose 29 percent Y-o-Y to Rs 11,485 crore from Rs 8,905 crore in the same quarter last year. EBITDA for the quarter came in at Rs 2,307 crore, up 34 per cent Y-o-Y over Rs 1,718 crore in the same quarter last year.

Hero MotoCorp: -

Hero MotoCorp registered a sales of 4,96,542 units in April 2024, a 34 percent Y-o-Y growth over April 2023. Scooter sales on the other hand also saw a 35.80 percent growth to 37,043 units in the past month.

Total domestic sales grew by 32.91 percent to 5,13,296 units in April 2024. Exports saw more than a twofold improvement on a Y-o-Y basis by 104 percent over April 2023 to 20,289 units in April 2024.

Thus, Hero MotoCorp’s total sales grew 34.71 percent Y-o-Y to 5,33,585 units in April 2024 relating to a 1,37,478 unit volume growth.

The company has reported 51 percent jump in standalone net profit to Rs 1,073 crore on a 21 percent increase in revenue to Rs 9,724 crore in Q3 FY24 as compared with Q3 FY23.

TVS motors: -

TVS Motor Company registered a growth of 25 percent on-year with sales increasing to 383,615 units in April 2024.

Total two-wheelers sales registered a growth of 27 percent on-year, with sales increasing to 374,592 units in April 2024. Domestic two-wheeler sales increased to 301,449 units in April 2024, witnessing growth of 29 percent.

Motorcycle sales grew 24 percent on-year as the company sold 188,110 units in April 2024. Scooter registered a growth of 34 percent with sales increasing to 144,126 units in April 2024.

TVS Motor recorded electric vehicles sales of 17,403 units in April 2024, indicating continued robust demand.

Total exports registered a growth of 12 percent with sales increasing to 80,508 units in April 2024. Two-wheeler exports registered a growth of 18 percent as 73,143 units got exported in April 2024. The three-wheeler segment registered sales of 9,023 units in April 2024 as against 11,438 units in April 2023.

Maruti Suzuki India Limited (MSIL):

Maruti Suzuki India Limited reported sales for April 2024 which stood at 1,68,089 units. Among these, 1,40,448 units were sold in domestic markets and 5,481 units were exported.

The compact segment saw sales dip to 56,953 units in April 2024, registering a drop of 24 percent over April 2023. Moreover, in the mid-size segment sales declined to 867 units last month from 1,017 units sold in April 2023.

On the contrary, the utility vehicles segment saw a strong response in April 2024 as sales reached 56,553 units, rising 54 percent over April 2023.

In the van segment, sales of the Maruti Eeco also gained some traction with sales up to 12,060 units in April 2024 from 10,504 units sold in April 2023.

With this the total domestic PV sales reached to 1,37,952 units in April 2024 which is only a marginal rise as compared to April 2023.

In the CVs space, MSIL offers Super Carry whose sales grew to 2,496 units in the past month from 2,199 units sold in April 2024.

Total domestic sales, that include both PVs and LCVs, sales grew marginally to 1,40,448 units in April 2024 as compared to the same month last year.

Maruti also make cars for Toyota India under an ongoing agreement. These sales to other OEM increased to 5,481 units in the month of April 2024 which makes total domestic sales (PV+CV+OEM) count to 1,45,929 units in April 2024.

In the export market, MSIL shipped 22,160 units in April 2024 which is a rise of 30 percent over April 2023.

Tata Motors: -

Tata Motors Limited recorded positive growth across all its segments in April 2024. In domestic and global markets, sales stood at 77,521 units, up 30 percent from April 2023. Total domestic sales also recorded 12 percent growth to 76,399 units, up 11.5 percent from April 2023 while there was strong growth across the commercial vehicle segment.

Considering passenger vehicle sales in April 2024, there were 47,883 units sold in domestic markets, marking a 2 percent improvement over April 2023. On the contrary, exports remained flat at 100 units. This took total PV sales (domestic and exports) to 47,983 units, up 2 percent over April 2023. The electric vehicles sales dropped 2 percent to 6,364 units in April 2024.

Tata Motors has reported growth across all segments of commercial vehicles. The HCV segment grew by 13 percent on-year to 7,875 units in April 2024. The ILMCV segment has seen remarkable improvement of 101 percent in sales accounting to 4,316 units last month. Meanwhile, the passenger carrier segment also witnessed a growth of 118 percent on-year to 4,502 units. SCV cargo and pick up sales also saw a 15 percent growth over April 2023 to 11,823 units in the past month.

This took total CV domestic sales to 28,516 units in April 2024 up 33 percent as compared to April 2023. Exports of CVs have reported modest growth at 4 percent on-year to 1,022 units in April 2024. The total CV sales thus increased 31 percent to 29,538 units in April 2024 from April 2023.

Scrapping Policy:

The Indian government, along with 21 states and union territories (UTs), has initiated various incentives to encourage the scrapping of old vehicles. These measures aim to address environmental concerns, reduce pollution levels, and promote the adoption of newer, more fuel-efficient vehicles. The incentives include discounts on road tax and registration fees for new vehicle purchases made after scrapping old ones, along with monetary incentives ranging from Rs. 25,000 (US$ 299.55) to Rs. 1.5 lakh (US$ 1,797.31) based on the type of vehicle and its condition. Moreover, these initiatives also focus on boosting the automotive industry by creating demand for newer vehicles and facilitating the recycling of scrapped ones. The move aligns with global efforts to combat climate change and reduce carbon emissions by phasing out older, more polluting vehicles. By incentivizing the scrapping of old vehicles and promoting the adoption of newer, cleaner alternatives, the government and participating states aim to create a more sustainable transportation ecosystem in the country.

Outlook: -

Improved vehicle supply and strategic planning in the 2W segment have led to rising customer bookings and better market sentiment, driven by favourable crop yields. In the PV segment, new model launches and favourable monsoon forecasts are set to stimulate customer interest, while bulk deals in the CV segment should bolster demand in sectors like iron ore, steel, and cement. The appeal of new electric models and sustained demand for conventional vehicles are likely to provide further momentum.

Election uncertainty continues to affect market sentiment, delaying customer conversions and stalling purchasing decisions. Financial constraints, extreme temperatures, and overcapacity in the CV segment could slow growth, while heavy discounting in the PV segment could impact profitability.

The Federation of Automobile Dealers Association remains cautiously optimistic about its near-term outlook. Market opportunities exist with rising customer interest in new models. However, election-related uncertainty and financial constraints remain key challenges that the industry will need to monitor closely to navigate this evolving landscape effectively.

Tables and Charts:

Source: FADA