If the year 2023 concluded on a high note for the Indian passenger vehicle industry, boasting record wholesales of 4.10 million units, marking an 8 percent increase, then the outlook for 2024 appears even more promising. The initial month of the new year witnessed manufacturers of passenger vehicles (including cars, utility vehicles, and vans) dispatching a record-breaking 393,074 units to their authorized dealers nationwide. This represents a substantial 14 percent year-on-year surge compared to January 2023, which saw 346,080 units being dispatched. Original equipment manufacturers (OEMs) are keen to fulfill the growing demand from consumers wishing to register new cars early in the year, as seen by the increase in sales.
Utility vehicles (UVs) constituted over 61 percent of the total passenger vehicle dispatches. Maruti Suzuki led the pack with 166,802 units sold. Honda Cars saw a significant portion of its dispatches contributed by the Elevate model, amounting to 53 percent. Similar to the record-breaking wholesale figures last month, retail sales also witnessed a robust performance in January 2024. With 393,250 units sold and a year-on-year growth of 13.30 percent, January 2024 now sets a new benchmark for the best-ever monthly retail sales for the Indian passenger vehicle industry, surpassing the previous record set in November 2023 (360,431 units).
The sustained demand for utility vehicles (UVs) continues to drive passenger vehicle dispatches, with UVs accounting for 61.46 percent of total shipments to showrooms in January 2024 and this trend has helped offset the decline in demand for entry-level hatchbacks and the tepid growth in other car segments.
Given the ongoing wave of demand for UVs, it is not surprising that companies with SUV-heavy portfolios are consistently gaining market share month after month. Maruti Suzuki maintains its leadership in the UV segment with a 26 percent share, up from 20 percent a year ago, followed by Mahindra & Mahindra (18 percent), Tata Motors (17 percent), and Hyundai Motor India (15 percent). Although Kia India's UV share has decreased to 10 percent from 16 percent a year ago, Toyota Kirloskar Motor has increased its share to 8 percent from 6 percent in January 2023. Honda Cars India, which had been relatively inactive, has made a comeback with the Elevate, boosting its UV share to 2 percent from 0.1 percent a year ago.
Maruti Suzuki
Maruti Suzuki India led the charge in January 2024 with 166,802 units sold, marking a 13 percent increase compared to the previous year. Last month's sales performance was the second-best in the ongoing fiscal year (April 2023 to March 2024), falling just 1,245 units short of the October 2023 record of 168,047 units. Maruti's UV portfolio, including models like the Brezza, Grand Vitara, Fronx, Jimny, XL6, Ertiga, and the new Invicto, contributed 62,038 units to its overall sales. This marks the company's second-best monthly UV sales yet, narrowly missing the record set in July 2023 by just 11 units.
Hyundai Motor India
Hyundai Motor India recorded its best-ever monthly dispatches in January 2024, with 57,118 units sold, reflecting a 14 percent increase over the previous year. UVs accounted for 62 percent of the company's total PV wholesales last month, driven by demand for models like the Creta midsize SUV and the Exter compact SUV. The launch of the Creta facelift on January 16 further boosted sales, with the new model receiving close to 50,000 bookings since its introduction.
Tata Motors
Tata Motors also had a strong start to CY2024, registering its best monthly wholesales for PVs (53,633 units, up 13 percent) and EVs (65,979 units, up 69 percent) and this marks the first time the company has exceeded 50,000 unit sales in a month. UV wholesales accounted for 76 percent of Tata Motors' overall PV dispatches in January 2024, driven by strong demand for models like the Nexon and Punch compact SUVs. The recent price reductions for Nexon EV and Tiago EV, along with Nexon's top 5-star rating in the Global NCAP crash test, are expected to further boost sales in the coming months.
Mahindra
Mahindra & Mahindra witnessed a robust 31 percent year-on-year increase in sales in January 2024, with 43,068 units sold. The company, with its portfolio of eight SUVs and one sedan, continues to capitalize on strong demand evident from its current booking backlog of 226,000 units. To meet this demand, Mahindra is ramping up production to 49,000 units per month in Q4 FY2024.
Kia Motors
Kia Motors India saw a 17 percent year-on-year decline in demand in January 2024, with 23,769 units dispatched. This decline is attributed to the surge in dealer inventory in December 2023 ahead of the launch of the Sonet facelift in January 2024. However, the Sonet saw a 25 percent year-on-year increase in dispatches, while other models like the Seltos and Carens MPVs witnessed declines.
Toyota Kirloskar Motor
Toyota Kirloskar Motor recorded an impressive 81 percent year-on-year growth in January 2024, with 23,190 PVs dispatched. Its consistent demand for MPVs and SUVs along with higher output at its Bidadi plant, are credited with this impressive achievement. UVs accounted for 82.52 percent of TKM's total PV sales last month.
Honda Cars
Honda Cars India saw a resurgence in January 2024, driven by strong demand for its Elevate midsize SUV, which accounted for 53 percent of the company's wholesales. With 4,586 units dispatched, the Elevate outperformed other models like the Amaze and the City signaling a promising start to the year for Honda in the domestic market.