Combined wholesales of the top seven passenger vehicle manufacturers were down 1 percent year-on-year in July at 3,11,553 units. The top three – Maruti Suzuki, Hyundai and Tata Motors – registered declines. In fact, four of the seven carmakers have registered a year-on-year decline in their wholesales.
The tepid sales numbers for July 2024 could be put down to carmakers rationalising high inventory levels. In early July, FADA president Manish Raj Singhania said that inventory levels had hit an all-time high, ranging from 62-67 days despite improved product availability and substantial discounts. He had said at the time, “Dealer feedback highlights challenges such as low customer inquiries and postponed purchase decisions. With the festive season still some time away, it is crucial for passenger vehicle OEMs to exercise caution.”
Maruti Suzuki
July 2024: 1,37,463 units, down 10 percent
Maruti Suzuki has reported a 10 percent sales decline in July 2024 – 1,37,463 units, just 303 units more than in June 2024. As it has been for quite some time now, sustained demand for most of its SUVs and MPVs has saved the blushes for the company. However, in July, despatches of its seven-model utility vehicle portfolio were also down. If there is some relief then it could be the revival of rural market sales, reflected in the improving sales of the entry-level Alto and S Presso – 9,960 units, which is a 4 percent YoY increase. Slashing prices of the Alto, S Presso and Celerio has paid off, and demand should improve for these models in the coming months.
Maruti despatched a total of 58,682 hatchbacks and sedans, comprising the Baleno, Wagon R, Swift, Celerio, Dzire, Tour S and Ignis. This is a 13 percent decrease YoY, and is the lowest in the past three months. The April 2024 tally was 56,953 units.
Hyundai
July 2024: 49,013 units, down 3 percent
Hyundai has reported despatches of 49,013 units in July 2024, which constitutes a YoY decline of three percent (July 2023: 50,701 units). SUVs continue to provide the bulk of the sales for the Korean carmaker. The new Creta, which is India’s bestselling midsize SUV, and the Venue and Exter compact SUVs continue to be the growth drivers. The new Creta clocked its highest-ever monthly despatches yet in July – 17,350 units – and accounted for 35 percent of Hyundai’s July wholesales. Strong demand for the model has meant that the new Creta cruised to 1,00,000-unit sales in just six months, making it the fastest in its segment to hit the 1,00,000 sales milestone – in half the time the Maruti Grand Vitara took. While the sales stats for the other SUVs have not been released, the two compact SUVs – Venue and Exter – would have also registered high numbers.
Tata Motors
July 2024: 44,725 PVs – down 6 percent / 5,207 EVs, down 21 percent
Growth is slowing down for Tata Motors, which had registered record passenger vehicle sales in FY2024 and CY2023. Tata despatched 44,725 cars and SUVs in July, down 3 percent YoY. However, demand for Tata Motors’ CNG models is growing. One of the market advantages that Tata Motors has is that its portfolio spans petrol, diesel, CNG and electric powertrains, thereby considerably expanding its reach compared to its rivals.
July saw despatches of 5,027 EVs (down 21 percent YoY). The combined April-July 2024 total of 21,606 units is down 16 percent on year-ago sales of 25,675 units and account for 12 percent of Tata Motors’ overall PV sales of 1,82,829 units. The company’s share of the ePV market, which was upwards of 75 percent not too long ago, has been reducing continually. Overall market share is currently down to 63 percent, reflecting the growing competition from rival EV makers and increased product choice for buyers. Nevertheless, there continues to be a big difference in numbers between Tata Motors and the rest of the competition.
Mahindra
July 2024: 41,623 units, up 15 percent
Mahindra has reported domestic market wholesales of 41,623 units in July 2024, which is a 15 percent YoY increase (July 2023: 36,205 units) and marks the seventh month in a row that Mahindra has surpassed the 40,000-unit despatches mark. Sales in the first four months of FY2025 (April-July 2024) at 1,67,871 units are up 22 percent YoY. Demand continues to be strong and as of August 2, 2024, Mahindra had total open bookings of 2,20,000 units. These comprise the flagship XUV700, Scorpio N and Scorpio Classic, Bolero, Thar and the XUV 3XO. Mahindra is benefiting from its substantially ramped-up production at its factories. Given the strong demand for its SUVs, it has outlined plans to further increase output.
Toyota
July 2024: 29,533 units, up 44 percent
Sustained demand for Toyota-made MPVs and SUVs, the bunch of rebadged models and ramped-up production is paying dividends for the company. So much so that Toyota’s despatches of 29,533 units, up 36 percent YoY, are its best monthly numbers in the year to date. Toyota’s rapid growth trajectory is reflected in its cumulative despatches in the first four months of FY2025 – the 97,874 units are a 36 percent YoY increase and constitute 40 percent of FY2024’s record 2,44,940 sales.
On August 1, Toyota signed an MOU with the government of Maharashtra to explore the potential of setting up of a greenfield manufacturing facility that will further strengthen the company's focus on advanced green technologies. In addition, work on the third plant in Bidadi near Bangalore, which was announced in 2023, at an investment of Rs 3,300 crores has already begun with work expected to complete in 2026.
Honda Cars India
July 2024: 4,624 units, down 5 percent
Honda Cars India despatched 4,624 units in July, down 5 percent YoY, while its April-July 2024 tally at 18,601 units is also down by 7 percent. In fact, the Japanese carmaker has exported 20,719 units in the first four months of FY2024, 2,118 units more than its domestic market wholesales. While the Elevate has been instrumental in bringing Honda back in the game, particularly in the SUV segment where it was missing, sales have slowed down in the past few months.
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