Auto sales in August witnessed a mixed trend across categories with most domestic two-wheeler sales witnessing growth whereas in the cars or passenger vehicles segment, SUVs performed better and small cars’ sales remained under pressure.
Car sales decline, SUVs still better in the segment
Maruti Suzuki, Hyundai and Tata Motors reported a decline in wholesales in August as the companies curtailed vehicle dispatches amid a drop in demand and cut inventories at dealer level.
Market leader Maruti Suzuki India said its total domestic passenger vehicle wholesales were at 1.43 lakh units last month as compared to 1.56 lakh units in the year-ago month, registering a dip of 8%. Sales of mini segment cars, comprising Alto and S-Presso, declined to 10,648 units last month as against 12,209 units a year ago.
Dispatches of compact cars, including Baleno, Celerio, Dzire, Ignis and Swift, also saw a decline of 20 per cent to 58,051 units as compared to 72,451 units in the year-ago month.
Also Read: Maruti Suzuki cuts prices of Alto K-10 and S-Presso as automaker eyes revival of small cars
Utility vehicle dispatches, consisting of Grand Vitara, Brezza, Ertiga, Invicto, Fronx and XL6, however, rose to 62,684 units last month as compared to 58,746 units earlier.
Tata Motors reported a 3% dip in passenger vehicle wholesales at 44,142 units last month as compared to 45,513 units in the year-ago month.
Kia India said its wholesales increased 17% year-on-year to 22,523 units in August. The automaker had dispatched 19,219 units to dealers in August 2023.
Toyota Kirloskar Motor reported a 35 per cent growth year-on-year in total wholesales at 30,879 units in August.
Two-wheeler sales improve
Bajaj Auto saw its August sales rise 16% on a year-on-year basis and 13% on a month-on-month basis with its two-wheeler segment continuing to lead while all the segments reported a growth between 5% and 24% YoY.
The firm recorded total sales of 3.97 lakh units versus 3.41 lakh units in August 2023 and 3.54 lakh units in July 2024. Domestic two-wheelers alone saw a growth of 30% YoY in August whereas exports during the month grew only 2%.
Also Read: Bajaj Auto shares hit 52-week high after monthly sales beat estimates
Hero MotoCorp said its wholesales increased 5 per cent year-on-year to 5,12,360 units in August. The two-wheeler major had dispatched 4,88,717 units to dealers in August 2023. The company said its domestic sales increased to 4,92,263 units last month as compared to 4,72,947 units in the year-ago period.
August sales were marginally impacted by supply shortages, which will be made up in September, it added. Exports rose to 20,097 units last month as compared to 15,770 units in August 2023. The company said it is geared to ramp up for the upcoming festive season, where it expects healthy growth.
TVS Motor Company said its total sales increased 13% year-on-year to 3,91,588 units in August as compared with the same month last year. The company had dispatched 3,45,848 units to its dealers in the same month last year, TVS Motor Company said in a statement.
Total two-wheeler sales last month stood at 3,78,841 units as against 3,32,110 units recorded in August 2023, a growth of 14 per cent. Two-wheeler sales in the domestic market grew 13 per cent year-on-year to 2,89,073 units last month from 2,56,619 units in August 2023.
Eicher Motors’ Royal Enfield sales were in line with muted expectations with total sales down 5% YoY and up 10% MoM. The total sales came in at 73,629 units vs 77,583 units (YoY) and Vs 67,265 units (MoM).
However, motorcycles up to 350cc (the biggest contributor) remained a drag amid heightened competition seen in the segment.
“While we acknowledge no single competition for RE has been able to create a major impact, combined competition volume currently stands at a healthy 10,000 units per month, thereby taking incremental growth away from RE. We continue to believe that RE-to-RE replacement thesis is unlikely to play out, thereby restricting growth outperformance during FY24-27E despite several new launches,” Elara Securities said.
Commercial vehicles remain under pressure
Tata Motors’ total commercial vehicle sales in the domestic market declined 3 per cent year-on-year to 25,864 units from 30,748 units in August 2023.
Mahindra & Mahindra’s Farm Equipment Sector (FES) announced that its domestic sales in August 2024 were at 20518 units, as against 20647 units during August 2023. Total tractor sales (Domestic + Exports) during August 2024 were at 21917 units, as against 21676 units for the same period last year. Exports for the month stood at 1399 units.
Also Read: M&M reiterates mid-teen double-digit growth target for SUV segment
Eicher, on the other hand, saw total sales rise 1% YoY and decline 1% when compared on a month-on-month basis. The total sales came in at 6,543 units versus 6,476 units (YoY) and versus 6,622 units (MoM).
(With PTI inputs)
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