The heady days of high single-digit growth may be behind for the Indian passenger vehicle industry. If the wholesales numbers for August 2024 released by some carmakers are any indication, then the month has not been as impressive as August 2023. The combined despatches last month of seven carmakers, at 3,36,457 units, is down 1 percent year-on-year.
The industry’s overall performance in August can be attributed to a combination of tepid consumer demand and high levels of inventory at dealers, which carmakers are now rationalising.
A glance at the data table below reveals that four of the seven carmakers recorded a decline YoY. When the top three carmakers register such YoY declines, it is natural that the industry's growth will be impacted overall.
| August 2024 new car, SUV sales | |||
|---|---|---|---|
| Carmaker | August '24 | August '23 | Change |
| Maruti Suzuki | 1,43,075 | 1,56,114 | -8% |
| Hyundai | 49,525 | 53,830 | -8% |
| Tata Motors | 44,142 | 45,513 | -3% |
| Mahindra | 43,277 | 37,270 | 16% |
| Toyota | 28,589 | 20,944 | 37% |
| Kia | 22,523 | 19,219 | 17% |
| Honda | 5,326 | 7,880 | -32% |
| Total | 3,36,457 | 3,40,770 | -1% |
Maruti Suzuki
August 2024: 1,43,075 units, down 8 percent
August 2024 marks the second straight month of decline for Maruti Suzuki. At 1,43,075 units, August 2024 despatches were down 8 percent compared to last year's 1,56,114 units. The rate of decline would have been higher if it weren’t for the sustained demand for its utility vehicles. UVs is the sole sub-segment that's seen growth for Maruti Suuzki both in August as well as the April-August period.
Despite the slashing of prices for the Alto and S Presso, demand continues to be lukewarm. August sales for these two models was down 13 percent YoY at 10,648 units. Things are not very different when it comes to the other hatchbacks in the portfolio. August despatches at 58,051 units are down 20 percent YoY, which is the lowest for this lot in the past four months. Demand for the company’s sole sedan – the Ciaz – as well as the Eeco van is down.
Hyundai
August 2024: 49,525 units, down 8 percent
Hyundai’s August 2024 despatches have the same rate of decline as Maruti Suzuki: 8 percent YoY. Hyundai has reported despatches of 49,525 units compared to 53,830 units in August 2023. This is the third month in the ongoing fiscal year that Hyundai's monthly sales have dipped below the 50,000 mark.
SUVs continue to provide the bulk of Hyundai's sales, with the Creta, Venue and Exter SUVs being the growth drivers. The facelifted Creta, priced from Rs 11 lakh, is especially seeing unprecedented demand and recently cruised to the 1,00,000-unit sales mark in just six months. This makes it the fastest in its segment to hit the 1,00,000 milestone – in half the time the Maruti Grand Vitara took.
Tata Motors
August 2024: 44,142 PVs – down 3 percent / 5,935 EVs, down 5 percent
Tata Motors has reported total despatches of 44,142 units including 5,935 EVs, in August 2024, down 3 percent YoY. This is the third straight month of sales decline for the company and reflects the current dampened market sentiment. Like Maruti Suzuki and Hyundai, Tata is feeling the heat, but the company hopes the recently launched Tata Curvv coupe-SUV will add some fizz to its sales.
Meanwhile, the Punch compact SUV continues to make waves – it outsold the Maruti Wagon R and became India's bestselling model in the January-July 2024 period. Additionally, with the expanding CNG infrastructure across the country, Tata Motors, like Maruti Suzuki, is benefitting from growing demand for its CNG models.
As for EVs, the company despatched 5,935 units in August 2024, down 5 percent YoY but up 18 percent on July 2024’s 5,935 units. Last month, Tata Motors’ EV penetration level was 13 percent. The company’s share of the electric passenger vehicle market, which was upwards of 75 percent not too long ago, has been continually reducing. This reflects the growing competition from rival carmakers and increased product choice for buyers.
Mahindra
August 2024: 43,277 units, up 16 percent YoY
Contrary to the top three carmakers, Mahindra’s August 2024 wholesales of 43,277 units are its best monthly numbers since October 2023’s 43,708 units, which is a 16 percent YoY increase (August 2023: 32,270 units). This marks the eighth month in a row that Mahindra has surpassed the 40,000-unit despatches mark.
Mahindra’s flagship SUV, the XUV700, would have driven past the 2,00,000 sales milestone in August domestically. Last month also saw the company launch the all-new Thar Roxx. Demand for Mahindra’s SUVs continues to be strong, and as of August 1, 2024 (and May 15 for the XUV 3XO), Mahindra had total open bookings of 2,20,000 units.
Mahindra is benefitting from its substantially ramped-up production at its factories. On June 14, Mahindra confirmed that it plans to further increase production capacity to 64,000 units per annum or 7,68,000 units per annum by end of FY2025 and 72,000 units a month or 8,64,000 units per annum by end-2026.
Toyota
August 2024: 28,589 units, up 37 percent
Toyota is maintaining its growth trajectory that it has shown since the beginning of the year. In August, the company despatched 28,589 units – its second-best monthly performance in FY2025 to date – which makes for a strong 37 percent YoY growth.
Toyota’s rapid growth trajectory is reflected in its cumulative despatches in the first five months of FY2025 – the 1,26,456 units are a 36 percent YoY increase and constitute 51 percent of FY2024’s record 2,44,940 sales. With seven months left in FY2025, Toyota is well placed to achieve the 3,00,000 sales milestone for the first time in a fiscal year.
Along with strong demand for its own models, the company is also benefitting from sustained demand for the clutch of rebadged models. In the April-July 2024 period, these Maruti Suzuki-rebadged models accounted for 52 percent of the company’s sales. What has also given Toyota a new charge in the competitive marketplace is its ramped-up production and customer-friendly initiatives.
Kia
August 2024: 22,253 units, up 17 percent
Kia India has registered its best monthly performance in the current fiscal in August 2024: 22,523 units, up 17 percent YoY (August 2023: 19,219 units). What is giving Kia strong sales momentum is the continued demand for its Sonet compact SUV that was updated in January this year.
With 10,073 units in August, the Sonet clocked five-figure sales for the second time this year, after January’s 11,530 units. The Seltos, with 6,536 was next, followed by the Carens MPV (5,881 units) and the all-electric EV6 (33 units). Kia India’s cumulative April-August 2024 sales at 1,03,798 units are up 3 percent YoY. The Sonet, which has outsold the Seltos for eight consecutive months this year, accounts for 44,682 units or 43 percent of the total sales. The all-electric EV6 has sold 99 units in the same period.
Honda
August 2024: 5,326 units, down 32 percent
Honda Cars India, which retails the Amaze and City sedans along with the Elevate midsize SUV, despatched 5,326 units in August, down a substantial 32 percent YoY (August 2023: 7,880 units). The April-August 2024 count at 23,927 units is also down by 14 percent.
While the Elevate midsize SUV has been instrumental in bringing Honda Cars India back in the game, particularly in the booming SUV segment where it was missing on the action, sales have slowed down in the past few months.
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