Passenger vehicle sales remain flat in May amid sluggish demand

Economic Times

2 days ago

Agencies Representational Image
Sales of cars, sedans and utility vehicles remained largely flat last month, albeit on a high base, amid sluggish consumer demand in the local market.
As per initial industry estimates about 352,000 passenger vehicles were sold last month, which is an increase of about 0.1% over the same period last fiscal. Automakers in India mostly report wholesale dispatches from factories to dealerships and not retail sales to customers.
Retail sales are estimated to have dropped by 0.8% in this period, industry insiders said. A senior industry executive who did not wish to be identified said, 'There is pressure in the market. But we also have to remember that the base is now very high. India is one of the very high markets in the world which is selling more than 4 million passenger vehicles annually. So even if the growth is modest, and is likely to remain so for some time, volumes are still good.' Demand in the local market continued to be driven by SUVs last month, with companies like Mahindra & Mahindra (M&M) and Toyota Kirloskar Motor (TKM) clocking robust sales numbers. Market leaders Maruti Suzuki and Hyundai did not release sales numbers for May Sunday.
Homegrown auto major Mahindra, in fact, continued to maintain its lead over rival Tata Motors in May, powered by demand for its range of utility vehicles. Mahindra sold 52,431 units last month, which is an increase of 21% over 43,218 units sold in May 2024. At Tata Motors, sales fell by 11% to 41,557 units in the same period. Nalinikanth Gollagunta, CEO, Automotive Division, M&M, said, 'Thanks to continued demand for our products, we were able to deliver industry-leading growth across our ICE and BEV portfolio.' Toyota Kirloskar Motor (TKM) reported an increase of 22% to sell 29,280 units last month. Varinder Wadhwa, Vice President, Sales-Service-Used Car Business, said, in line with overall market trends, the company's MPV and SUV segments continued to be the primary growth drivers—reflecting a clear shift in customer preference towards versatile mobility options.'With the onset of the monsoon and forecasts indicating a normal to above-normal season, we remain optimistic about improved market sentiment in the coming months, particularly across rural and semi-urban regions. This, backed by our vast product portfolio and innovative campaigns, we are well-positioned to maintain this growth trajectory', Wadhwa informed. Kia India and JSW MG Motor saw sales grow by 14% (to 22315 units) and 40% (to 6304 units), respectively.
In the two-wheeler segment, demand remained healthy with Chennai-based TVS Motor Company reporting sales increase of 14% at 309,287 units in May. Sales of commercial vehicles was subdued. Market leader Tata Motors saw sales fall 9% to 25,872 units in the month under review. In the farm equipment sector, Mahindra sold 38,914 tractors last month, which is an increase of 10% over Veejay Nakra, President – Farm Equipment Business, Mahindra & Mahindra, said, 'Early advancement of above normal Southwest monsoon should bode well for kharif sowing. Land preparation activities are progressing well for paddy sowing. Approval of hike in MSP for Paddy and other kharif crops will bring positive sentiments among farmers. Better reservoir levels , Government announcement of record foodgrain production and introduction of various schemes will help farmers aim higher productivity going forward and in turn augur well for tractor demand.' COMPANY MAY 2024 MAY 2025 % CHANGE
Mahindra & Mahindra 43218 52431 21 Tata Motors 46697 41557 -11 Toyota Kirloskar Motor 23928 29280 22.4 Kia India 19500 22315 14.4 JSW MG Motor India 4510 6304 40