Indian automotive market witnesses steady growth on the back of robust demand

Indian automakers have reported a continued surge in sales for the month of February, buoyed by robust demand for both two-wheelers and utility vehicles, according to monthly sales data released by industry players.

Maruti Suzuki India, a leading automotive manufacturer, recorded total sales of 197,471 units, comprising domestic sales of 163,397 units. This marks a notable 9 per cent year-on-year increase in the domestic market segment. Hyundai, another prominent player in the Indian automotive sector, reported domestic sales of 50,201 units in February, representing a solid 6.8 percent growth compared to the same period last year.

Tata Motors witnessed a significant uptick of 19 per cent in its passenger vehicle (PV) sales for the month, surpassing the 12 per cent year-on-year rise recorded in January. Meanwhile, Toyota's Indian unit achieved record-breaking sales for the second consecutive month, reaching 25,220 units—a remarkable 61 per cent surge from the previous year. The company attributed this growth to strong demand for its sports utility vehicles (SUVs) and multi-utility vehicle models.

In February, MG Motor recorded a sales growth of over 18 per cent, selling 4,532 units compared to 3,825 units sold in January. Honda Cars India meanwhile, reported a 17 per cent year-on-year growth in domestic sales for February 2024, with 7,142 units sold.

Analysts attribute the increase in PV sales, including sedans and SUVs, to elevated inventory levels and heightened discount offers, a report by Reuters suggested. Mahindra and Mahindra, a major player in the SUV segment, reported a substantial 40 per cent increase in SUV sales, driving overall sales up by 24 per cent in February.

Growing two-wheeler market

In the two-wheeler segment, Hero MotoCorp witnessed a robust 22 per cent year-on-year growth, selling 433,598 units in February 2024 compared to 356,690 units in the same month last year. Bajaj Auto also experienced a notable uptick, with total two-wheeler sales rising by 25 per cent to 294,684 units.

TVS Motor Company reported impressive monthly sales of 368,424 units, marking a significant 33 per cent increase from February 2023. Furthermore, electric vehicle sales surged by 16 per cent, with sales units rising from 15,522 in February 2023 to 17,959 in February 2024.

Suzuki Motorcycles witnessed a remarkable 59 percent increase in domestic volume, selling 83,304 units in February 2024 compared to 52,451 units in the same period last year. Royal Enfield also reported a notable growth of 10 percent, with February sales increasing from 71,544 units in 2023 to 75,935 units in 2024—an increase of 6 per cent.

Analysts anticipate this healthy momentum to continue, especially in light of the absence of any price hikes expected for at least the next three months, further driving demand across the automotive sector in India.