Passenger vehicle (PV) dispatches to dealers in January surpassed previous months as demand momentum continued into the new year. The industry recorded a 14% year-on-year (y-o-y) increase to 394,571 units during the reporting month, according to data shared by Maruti Suzuki.
January volumes outperformed even October (391,811 units), traditionally the best month for the industry due to festive demand. Unlike the supply chain issues hindering production in January 2023, the industry faced no production-related issues this year.
The PV industry is on course to close FY24 at around 4.2 million units, following 3.48 million units in the April-January period, said a top executive of Maruti. The growth has come on the back of price hikes announced by the industry in December.
Speaking to FE, Shashank Srivastava, senior executive officer, marketing and sales at Maruti Suzuki, said, “Retail sales for January are estimated at 309,000, reflecting 13.4% (y-o-y) growth. Actual deliveries and registrations would be higher because many vehicles picked up by consumers in the last few days of December would have been registered in the first week of January.”
Maruti Suzuki, the country’s top carmaker, achieved a 13% y-o-y growth to 166,802 units in January. Utility vehicles such as Ertiga and Brezza led the growth, while the mini segment, comprising Alto and S-Presso, continued to contract.
Fuelled by demand for the newly launched SUV Creta and Exter, Hyundai Motor India regained the second spot in the PV ranking. The Korean car brand reported a volume growth of 14% y-o-y in January to 57,115 units, marking the best-ever monthly volume.
Tarun Garg, chief operating officer, Hyundai Motor India said “This strong growth has been fuelled by an overwhelming customer response to the Creta, which has already garnered close to 50,000 bookings within a month of the booking open announcement.”
Tata Motors and Mahindra and Mahindra (M&M), India’s third and fourth-largest carmakers, posted volume growth of 12% and 31%, respectively. Electric vehicles continued to outpace the growth for Tata Motors, surging by 69% (including exports). The 2024 version of the XUV700 was launched by M&M during the month, contributing to incremental demand.
Toyota Kirloskar Motor outpaced the rest of the industry, posting its best-ever performance. The Bengaluru-based company clocked 23,197 units in wholesale volumes, reflecting an 81% y-o-y growth.
