In Greater Demand
India’s auto sector is in overdrive. Over a dozen-and-half new cars, bikes, enhanced variants of existing bestsellers (cars and two-wheelers) are expected to be launched in the first-half of 2024, in line with the greater consumer pull for SUVS, MUVs and electric vehicles or EVs.
As many as 16-18 upcoming launches have been planned in the price range of Rs 10 lakh to Rs 15 lakh in the first three months of 2024 in the four-wheeler segment alone. Among these are the Bolero Neo Plus, Punch EV, Creta 2024, Stargazer, Curvv, Next-Gen Swift and the Thar 5-door that are keenly awaited. The middle months are expected to see new car launches from carmakers including Maruti Suzuki, Tata Motors, BYD, Mahindra, Hyundai, Nissan, Renault and Toyota, among others.
The carmakers are buoyed by the November sales data that highlights the remarkable growth of the passenger vehicle segment, fuelled by the continuing surge in the SUV segment. Maruti Suzuki India, the nation's largest carmaker, sold almost as many vehicles in the domestic market as those by Hyundai Motor India, Tata Motors, and Mahindra & Mahindra combined.
The industry soared to new heights, reaching an unprecedented November volume of 335,354 units, marking a remarkable 3.95 per cent year-on-year (y-o-y) growth compared to the 322,600 units recorded in the same month of the previous year – a record in its own right.
In fact, the November performance is continuation of a trend that has persisted throughout 2023 wherein each successive month delivered their highest-ever sales volume, making it a year of unprecedented success.
In November, Hyundai, Tata, and Mahindra together notched up domestic passenger vehicle sales of 135,500 units, which was merely 1,342 units more than that of Maruti during the same period. This resounding success cements the passenger vehicle industry's position as a powerhouse in the automotive sector for 2024.
Manish Raj Singhania, President – Federation of Automobile Dealers Associations (FADA) describes 2023 as the year in which the automobile retail showcased remarkable resilience and adaptability, navigating through a landscape marked by uncertainties and challenges. "This year has been a testament to the sector's robustness, reflecting not just recovery from the past setbacks of Covid but also a dynamic evolution in response to changing market demands and technological advancements," says Singhania.
Bumper Sales For All
In a jubilant proclamation, Shashank Srivastava, Maruti's Senior Executive Officer for Marketing and Sales, attributed the impressive surge in November numbers to "the better availability of semiconductors leading to higher production coupled with the festive season in the first fortnight of November".
In November, Maruti secured a commanding market share: 69.2 per cent in the hatchback segment, 53 per cent in the sedan segment, 55 per cent in the multi-purpose vehicle (MPV) segment, a whopping 95 per cent in the van segment, and a
notable 20 per cent in the SUV segment. Cumulatively, the carmaker proudly held a majestic 65 per cent share in the non-SUV segment.
Srivastava highlighted the SUV segment's spectacular contribution, reaching an astounding 178,598 units and claiming an impressive 53.26 per cent share of the overall passenger vehicle volume.
Hyundai's domestic passenger vehicle wholesale dispatches danced to a delightful tune, surging 3.02 per cent year on year to reach 49,451 units in November. Tarun Garg, the company's COO, while sharing the joyous news, says, "With encouraging customer response leading to higher retail sales during the festive season, our dealer network stock is at a very optimum level of three weeks." Garg reveals that Hyundai Motor India's SUV line-up contributed over 60 per cent to the overall sales, with the recently introduced Hyundai Exter achieving a milestone of 100,000 bookings.
The November symphony continued with Tata's domestic passenger vehicle volume maintaining a steady rhythm, remaining flat at 46,068 units, while Mahindra orchestrated a crescendo of growth, registering an impressive 32.22 per cent year-on-year surge, at 39,981 units for the month.
Veejay Nakra, President, Automotive Division, Mahindra, says, "We continue our growth trend, backed by strong demand for our SUV portfolio. In November, we sold a total of 39,981 units, a growth of 32 per cent." The symphony of success played on, echoing the resilience and triumph of the automotive industry.
How will 2024 pan out for the sector? Singhania says in 2024 the automobile sector is poised for steady growth with an expected low single-digit growth in passenger vehicles and high single-digit growth in two-wheelers, the sector is optimistic, especially if rural sentiments improve. "The commercial vehicle and three-wheeler segments are anticipated to continue their robust performance, potentially growing in double digits. The trajectory for 2024 will largely hinge on agricultural output and rural market dynamics, crucial drivers for the automobile sector, particularly for two-wheelers and tractors," he adds.
Same is true for the luxury car segment. Says Balbir Singh Dhillon, Head, Audi India: “This year marked a strong performance for the luxury car segment propelled by consistent demand. We remain confident about the growth of luxury car segment in 2024 as well.”
