Domestic PV sales growth flat in April due to high base effect, elections

PTI, May 1, 2024, 6:36 PM IST

Representative image (Source: iStock)

New Delhi: Passenger vehicle sales in India kicked off on a flat note in new fiscal 2024-25 with 3.38 lakh units sold in April, impacted by high base effect and muted demand due to the ongoing general elections.

Dispatches of passenger vehicles from manufacturers to dealers were at 3,38,341 units in April 2024 as compared to 3,32,468 units in the same month last year, a growth of 1.77 per cent with major players Maruti Suzuki India, Hyundai and Tata Motors reporting marginal growth in their domestic wholesales.

The flat growth witnessed in April is due to the high base that the industry had last year, coupled with the impact of ongoing general elections, Maruti Suzuki India Senior Executive Officer, Marketing & Sales, Partho Banerjee told reporters in a virtual interaction.

“We have started on a very high base this year…Right now the country is going through elections and there is a model code of conduct…During the elections the markets are a little muted. Once elections are over, I think we will be seeing a different market,” he said.

He further said, “Till the month of June I think things will be more or less like this and after June maybe we will see revival in the market.” Maruti Suzuki’s total domestic passenger vehicle sales were 1,37,952 units compared to 1,37,320 units in the year-ago period.

Similarly, Hyundai Motor India’s domestic wholesales saw an increase of 1 per cent to 50,201 units last month from 49,701 units in the year-ago period.

Hyundai Motor India COO Tarun Garg said the PV industry’s growth seen in April was a reflection of what was estimated in beginning of 2024 of about an overall low single-digit growth.

“It is more because of the high base effect of the last two years and not necessarily a slowdown,” he said in a virtual interaction, adding the inquiry levels and booking were at similar levels to the last year.

With the improvement in the supply chain, the overall order book of the industry has reduced, Garg said.

The prediction of a normal monsoon augurs well, specially from a rural sales perspective which has also been accelerated by the rapid development in road infrastructure and rising aspirations of the consumers there, he added.

Tata Motors reported a 2 per cent increase in total domestic PV sales, including electric vehicles at 47,883 units last month as compared to 47,007 units in April 2023.

On the other hand, Toyota Kirloskar Motor said its total wholesales increased 32 per cent year-on-year to 20,494 units in April as compared to 15,510 units in April 2023.

“We believe that this stable performance underlines a strong foundation for another positive year,” Toyota Kirloskar Motor Vice President, Sales-Service-Used Car Business, Sabari Manohar said.

Another automaker, MG Motor India said its retail sales declined 1.45 per cent year-on-year to 4,485 units last month. It had reported sales of 4,551 units in April 2023.

In the two-wheeler segment, TVS Motor Company reported 29 per cent growth in the domestic market at 3,01,449 units last month, up from 2,32,956 units in April 2023.

Mid-sized motorcycle maker Royal Enfield reported a 9 per cent growth in domestic sales at 75,038 units last month as against 68,881 units in April 2023.