Passenger vehicle sales decline by 2% to 3.5 lakh units in August

Representation Image (Credit: Fisker automotive)

Amid surging inventory levels at dealership outlets, Passenger Vehicle (PV) wholesales saw a drop of 2.38 percent at 3,52,500 units last month. The total number of dispatches by carmakers during August last year stood at 3,61,123 units. This is the second consecutive decline in car wholesales this fiscal after July 2024 (down by 2.5 percent at 3,44,076 units).

While carmakers were cutting down dispatches to match retail numbers, the high base effect of last year also resulted in degrowth in total PV volumes in August 2024. However, industry players reckoned that the Year-on-Year (YoY) sales figures are not comparable as the festive season came in early during late August last year.

Maruti Suzuki India Limited’s total domestic passenger vehicle wholesales were at 1,43,075 units last month as compared with 1,56,114 units in the year-ago month, a dip of 8 per cent.

According to Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki, the industry volumes are similar to last year. “How many vehicles we are transferring from the factory to the dealer stock is not the right indication this month. The important thing  is that the market is actually seeing a good traction. Overall, our wholesale has been in line with retails, which is a good sign,” Banerjee said.

He noted that it has seen exceptional response to its vehicles with the start of the Chingham month in August 17.  “We saw that there is upside in the booking to the tune of 7 percent  in Kerala. Onam is the time when the maximum (retail) sales happen, which is expected in September,” noted Banerjee, adding, “I feel in the festival time, we are going to see a revival in the sales of the passenger cars.”

Hyundai Motor India Limited (HMIL) saw an 8 percent dip to 49,525 units last month from 53,830 units in the year-ago period.

Tarun Garg, Whole-time Director and Chief Operating Officer, HMIL said, "SUVs, led by models like Creta, Venue and Exter remain a key growth driver for HMIL in 2024 with 66.8 percent contribution to domestic sales” He also revealed that the company is gearing up to lunch the new Alcazar. He added, “We are confident of strong festive season response to this new launch.”

Tata Motors’ sales of passenger vehicles, including electric vehicles, in the domestic market, were 3 per cent lower at 44,142 units as compared with 45,513 units in the year-ago month.

However, Mahindra & Mahindra’s PV sales in the domestic market rose 16 percent to 43,277 units last month against 37,270 units in August last year. “With Thar Roxx, we're setting our sights on making the Thar franchise the No. 1 SUV franchise (Rs >12.5 lakh segment) by volume within the next 3 to 5 years,” said Veejay Nakra, President, Automotive Division, M&M Ltd.

Similarly, Toyota Kirloskar Motor (TKM) reported a 35 percent growth year-on-year in total wholesales (including exports) at 30,879 units in August.

According to Sabari Manohar, Toyota Kirloskar Motor Vice-President, Sales-Service-Used Car Business, SUVs and MPVs continue to significantly contribute to the company's sales numbers, reflecting a growing preference for these segment vehicles. “Interestingly, this trend is not limited to major urban centres but extends to tier-2 and tier-3 markets as well, demonstrating widespread customer acceptance for TKM offerings,” noted Manohar.

JSW MG Motor India saw its retail sales increase by 9 percent year-on-year to 4,571 units in August 2024 as against 4,185 units in the same month last year. Kia India stated that its total wholesales increased 17 percent YOY to 22,523 units in August as compared to 19,219 units in the same month last year.