Car Sales Stick to Slow Lane in May
HighlightsIndia's passenger vehicle market saw a marginal year-on-year increase of 0.1%, with approximately 352,000 vehicles sold in May 2024. Mahindra & Mahindra achieved a significant sales increase of 21%, selling 52,431 units, while Tata Motors experienced an 11% decline in sales to 41,557 units during the same period. Toyota Kirloskar Motor reported a 22% growth in sales, reaching 29,280 units, driven primarily by demand for Multi-Purpose Vehicles and Sports Utility Vehicles.
India's passenger vehicle market remained flat in May even as Mahindra & Mahindra (M&M) and
Toyota Kirloskar Motor
clocked strong double-digit growth in volumes, riding on robust demand for their utility vehicle lineups.
Overall, the industry sold about 352,000 cars, sedans and utility vehicles last month, marking a marginal 0.1% year-on-year increase, according to initial industry estimates.
'There is pressure in the market,' said a senior industry executive who requested not to be identified. 'But we also have to remember that the base is now very high. India is one of the very high markets in the world…selling more than four million passenger vehicles annually. So, even if the growth is modest, and is likely to remain so for some time, volumes are still good,' the person added.
Retail sales are estimated to have declined by 0.8% year on year in May, industry insiders said. Most automakers in India report wholesale figures—factory dispatches to dealerships—and not retail sales to customers.
Demand in the local market continues to be driven by SUVs.
Homegrown auto major Mahindra continued to maintain its lead over rival
Tata Motors
in May, powered by demand for its range of utility vehicles. Mahindra sold 52,431 units last month, up 21% over 43,218 units sold in May 2024.
Tata Motors' passenger vehicle sales fell 11% to 41,557 units from 46,697 units during the same period. 'Thanks to continued demand for our products, we were able to deliver industry-leading growth across our ICE (internal combustion engine powered by petrol or diesel) and BEV (battery electric vehicles) portfolio,' said Nalinikanth Gollagunta, CEO of automotive division at M&M. Toyota Kirloskar reported an increase of 22% to sell 29,280 units last month, with MPV and SUV segments continuing to be the primary growth drivers.
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