News/ Industry/ Indian Car Market Soars Amid Festive Season Surge | October 2024 Sales Analysis

Indian Car Market Soars Amid Festive Season Surge | October 2024 Sales Analysis

In October 2024, car registrations in India soared to record-breaking numbers, marking an unprecedented month for the automotive industry. This boost, powered by a surge in demand for premium and festive season purchases, provided relief to automakers and distributors who had been grappling with high inventory levels and financial pressure.

Data from Vahan, the Indian government’s vehicle registration portal, shows an impressive 478,450 units were registered in October—surpassing the previous peak set in January 2024 by nearly 80,000 units. The October surge, with an average of 15,434 cars registered each day, is a clear reflection of Indian consumers' increasing enthusiasm for automobile purchases, especially during auspicious times.

Festive Season Sales Power the Surge

October 2024 witnessed a remarkable 34% year-on-year increase in car registrations, significantly higher than usual monthly growth rates. This is attributed to the longer festival season this year, which kicked off on October 3, offering more “auspicious days” for car buyers. In contrast, last year's festival season began mid-month, offering fewer days for celebratory purchases. With eight of the first ten months of 2024 seeing monthly car registrations exceed 300,000 units, the cumulative total reached 3.383 million units—7.5% more than in the same period last year.

Sales growth in October was particularly strong in states like Maharashtra, Gujarat, and Uttar Pradesh, all of which posted impressive numbers. Maharashtra led with 70,759 units, a 49% year-on-year growth, followed by Gujarat and Uttar Pradesh with 54,731 and 54,118 units, respectively. Rajasthan and Madhya Pradesh also contributed to the national growth surge, recording increases of 86% and 60%.

Key Performers and Market Highlights

Several automakers capitalized on the festive boom, while others faced mixed fortunes. Here’s a closer look at the performance of major manufacturers:

Maruti Suzuki

Maruti Suzuki, India’s largest carmaker, set a personal best with 206,434 units sold in October 2024. While total monthly sales grew by 20% from last year, domestic passenger vehicle sales fell 5% from October 2023 figures. However, Maruti Suzuki saw significant growth in SUV sales, with 70,644 units sold. Notably, Maruti's export performance surged, with 33,168 units shipped overseas—a marked improvement from 21,951 units last year.

Hyundai India

Hyundai maintained strong momentum, selling 55,568 units domestically, a modest 1% increase over October 2023. Hyundai's SUVs were a hit, representing 68.2% of the brand's total sales, with the Creta leading the charge at a record-breaking 17,497 units. Additionally, Hyundai’s exports grew by 7%, totaling 14,510 units. This combined performance made October Hyundai's third-highest month ever for both domestic and total sales.

Tata Motors

Tata Motors reported slightly lower domestic sales at 48,131 units, compared to 48,337 in October 2023. Despite the small drop in passenger vehicle sales, Tata’s EV segment continued to make strides. The company sold 5,355 electric vehicles, marking a small decline in year-on-year growth but maintaining a substantial share in the burgeoning Indian EV market.

Mahindra & Mahindra

Mahindra had a standout month, recording 54,504 units in the domestic passenger vehicle segment, translating to a 25% year-on-year increase. The SUV-focused brand saw cumulative SUV sales reach 55,571 units across domestic and overseas markets. Year-to-date, Mahindra's passenger vehicle sales showcased an impressive 22% growth, underlining its dominance in the SUV segment.

Toyota Kirloskar Motor

Toyota reported strong growth, with 30,845 units sold in October, representing a 41% year-on-year increase. Domestic sales accounted for 28,138 units, while exports contributed 2,707 units. Toyota’s cumulative sales for the financial year reached 1,93,468 units, a 33% rise compared to last year. This success was partly driven by the brand's solid reputation for reliability and expanding SUV lineup.

MG Motor India

MG Motor posted a robust 31% year-on-year increase with 7,045 units sold. A large part of MG’s success stemmed from its electric vehicle lineup, led by the newly launched Windsor EV, which alone accounted for 3,116 units. The EV model now makes up 70% of MG’s total sales, reflecting the brand's commitment to sustainability and the rising consumer interest in green mobility.

Rising Demand and Future Prospects

Sales spikes during October’s peak festival season offered much-needed relief for car manufacturers and dealers. Throughout September and October, car registrations rose by 9% to 756,229 units, alleviating some inventory pressure and financial strain on dealerships. However, industry insiders are cautious about projecting continued growth. They expect cumulative three-month sales growth from September to November to average around 5%, noting that single-digit growth is anticipated for wholesale sales in 2024 as inventory levels stabilize.

Sales executives believe that while the current registration figures reflect positive demand, assessing the industry's overall health requires observing cumulative sales data for the entire festive quarter.

 

TopGear Magazine November 2024