PV sales up 11% in February to 3.73 lakh units

February 2024 saw an 11.3 percent year-over-year increase in domestic passenger vehicle (PV) sales, marking another record-breaking month for the domestic auto sector. Sports utility vehicles (SUVs) continued to see high demand, supporting the surge in sales while small and compact cars’ percentage of PV sales overall shrank.

PV sales increased by 8.6% YoY to 38.59 lakh units in the first 11 months of FY24. Positive economic development continues to be the industry’s primary driver, according to Maruti Suzuki’s senior executive officer of marketing and sales, Shashank Srivastava. Other significant growth reasons, he said, include the availability of SUV models and an improved supply situation. He believes that 42.1 lakh units would be sold by the end of FY24 in the domestic PV market.

According to Srivastava, India’s rural areas are expected to continue to expand at a faster pace than its metropolitan areas, with 11.7% growth compared to 8% for urban areas. In February 2024, Maruti had a 9% increase in domestic PV sales, reaching 1,60,271 units, compared to 1,47,467 units in the same month the previous year. Tata Motors moved up to the number two spot in February with 51,321 units shipped, a 19% YoY increase. Hyundai sold 50,201 units at home wholesales, a 7% YoY increase.

SUV sales for Hyundai Motor India, according to COO Tarun Garg, are still strong in the home market and made up 67% of the company’s total sales in February. Garg also emphasized the rise in demand in rural areas.

“In February 2024, we became the first company in Hyundai India’s history to surpass the 20% mark in rural penetration… People are purchasing new SUVs because, in addition to increasing money, infrastructural development is making rural areas more accessible, according to Garg. Hyundai, he said, is nevertheless cautiously optimistic about the year. He said, “We are aware that there are worries about the geopolitical environment and inflation.”

PV sales for SUV manufacturer Mahindra & Mahindra increased 40% to 42,401 units last month. With 25,220 units sold in February, Toyota Kirloskar Motor had its highest monthly wholesale sales to date.

Hero MotoCorp had a 19% increase in wholesale sales to 4,68,410 two-wheeler units. At 4,58,711 units, Honda 2-Wheelers recorded an 86% increase in overall sales. According to TVS Motor Company, its wholesale sales increased 33% in February 2024 to 3,68,424 units.