The Indian passenger vehicle (PV) industry, which surpassed the million-unit mark with 10,26,006 units sold in the first quarter of FY2024, started the second quarter on a similarly slow note. According to company-wise releases from seven PV manufacturers, combined wholesale dispatches amounted to 311,553 units in July, a 1% year-on-year decline compared to the 315,375 units dispatched in April-July 2023. Four out of these seven OEMs experienced a YoY downturn in their wholesales.
On a cumulative basis for the four months from April to July 2024, the total dispatches of these seven OEMs reached 1.23 million units, marking a 3% increase over the 1.19 million units dispatched in the same period in 2023. This reflects the broader trend of tepid numbers in July 2024, attributed to SUV and car makers rationalizing high inventory levels. In June 2024, PV retail sales of 281,566 units witnessed a significant decline of 6.77% YoY (June 2023: 3,02,000 units) and a 7.18% month-on-month drop (May 2024: 303,358 units).
Industry experts have highlighted that in early July-2024 inventory levels must have reached all time high of 62 to 67 days. This was despite improved product availability and substantial discounts to revamp demand. He noted that dealer feedback pointed to challenges such as low customer inquiries and postponed purchase decisions, urging PV OEMs to exercise caution and implement effective inventory management strategies to mitigate financial strain from high interest costs.
The following is an overview of how each of these OEMs fared in July 2024:
Maruti Suzuki India Maruti Suzuki India, the market leader and PV industry bellwether, reported a 10% sales decline in July 2024, with 137,463 units sold. This performance is in line with the tepid sales observed in the first quarter of FY2025. UV (utility vehicle) portfolio witnessed decline in dispatches. However, there was a slight revival in rural market sales, reflected in the improving fortunes of the entry-level Alto and S-Presso models, with a 4% YoY increase to 9,960 units. The hatchback range, comprising six models, saw a 13% YoY decline in dispatches to 58,682 units. The company’s sole sedan, the premium Ciaz, experienced a 55% drop in wholesales to 603 units, and the Eeco van also saw a slight decline.
Hyundai Motor India Hyundai Motor India reported dispatches of 49,013 units in July 2024, a 3% YoY decline. SUVs continue to drive the bulk of sales for the company, with the new Creta recording its highest-ever monthly dispatches at 17,350 units, accounting for 35% of Hyundai’s July wholesales. The Venue and Exter compact SUVs also contributed significantly to sales.
Tata Motors Tata Motors saw a 6% YoY decline in July 2024 PV dispatches to 44,725 units, with EV wholesales down by 21% YoY. The company’s CNG models are gaining traction, and it plans to introduce the Nexon iCNG model this fiscal year. Tata Motors maintains leadership in the EV segment, though its share of the ePV market has been decreasing due to growing competition. In July 2024, the company’s’ share in India’s e-Passenger Vehicle market was 63%, which declined from 70% in July 2023.
Mahindra & Mahindra Mahindra & Mahindra continued its strong performance with a 15% YoY increase in July 2024 wholesales, reaching 41,623 units. The company’s SUV portfolio, comprising eight models, remains a key growth driver. M&M has reported strong demand, with total open bookings of 220,000 units as of August 1, 2024.
Toyota Kirloskar Motor Toyota Kirloskar Motor reported a robust 44% YoY increase in July 2024 dispatches, with 29,533 units sold. The company’s growth is driven by sustained demand for its MPVs and SUVs, along with ramped-up production and customer-friendly initiatives. Toyota’s cumulative dispatches for April-July 2024 reached 97,874 units, a 36% YoY increase.
What’s ahead for the Passenger Vehicle Industry?
With rationalized inventory levels and sustained demand for popular SUVs and MPVs, Indian passenger vehicle manufacturers are gearing up for the upcoming festive season. Key festivals such as Raksha Bandhan, Janmashtami, Onam, Ganesh Chaturthi, Dussehra, and Diwali are expected to drive new vehicle purchases, providing an opportunity for the PV industry to capitalize on. Effective inventory management and strategic market engagement will be crucial for manufacturers to navigate the current market conditions and sustain growth.
Market this week
| 29th July 2024 (Open) | 02nd August 2024 (Close) | %Change | |
| Nifty 50 | ₹ 24,943 | ₹ 24,718 | -0.9% |
| Sensex | ₹ 81,680 | ₹ 80,982 | -0.9% |
- The market ended an eight-week gaining streak after Friday’s (August 2) correction erased the weekly gains, following global equity market trends amid weak economic data.
- During the week, the benchmarks recorded a fresh all-time high after the Fed Chair indicated a possible rate cut at the September meeting due to easing inflationary pressures.
- Among sectors: Nifty IT and Realty each declined by 3 percent. Nifty Auto index dropped by 2 percent. Nifty FMCG index fell by 1.6 percent. Nifty PSU Bank and Metal indices each decreased by 1 percent. Nifty Energy index rose by 2.5 percent. Nifty Pharma and Media indices each increased by 1 percent.
- Foreign institutional investors (FIIs) extended their selling spree, offloading equities worth Rs 12,756.26 crore.
- Domestic institutional investors (DIIs) compensated by buying equities worth Rs 17,226.06 crore.
Weekly Leaderboard
| NSE Top Gainers | NSE Top Losers | ||||
| Stock | Change (%) | Stock | Change (%) | ||
| NTPC | ▲ | 5.9 % | Eicher Motors | ▼ | (5.7) % |
| BPCL | ▲ | 5.6 % | LTIMindtree | ▼ | (4.8) % |
| Asian Paints | ▲ | 5.3 % | Grasim Industries | ▼ | (4.8) % |
| Divi’s Labs | ▲ | 4.2 % | M&M | ▼ | (4.8) % |
| Power Grid Corporation | ▲ | 4.1 % | Wipro | ▼ | (4.3) % |
Stocks that made the news this week:
- Dabur Ltd’s stock rose by 1 percent to Rs 649 per share on August 2, following robust June quarter results driven by higher domestic volumes. Kotak Institutional Equities reiterated its bullish stance, upgrading Dabur’s target price to Rs 665 from Rs 600 and maintaining an ‘add’ rating. The firm cited a strong growth outlook fueled by improved rural demand, supported by a good monsoon, higher government spending, and lower inflation. Sequential volume growth over the past three quarters positions Dabur well to achieve its mid-single-digit volume growth guidance for FY2025E.
- Hyderabad-based Gland Pharma Ltd announced that the US FDA conducted surprise inspections of its facilities to evaluate Good Manufacturing Practices (GMP). The Pashamylaram facility was inspected from July 25 to August 2, following a prior inspection of the Dundigal facility from July 22 to July 25. The company is set to announce its Q1FY25 earnings on August 6.
- Bikaji Foods surged over 8 percent on August 2 to a new high of Rs 777 per share on the NSE, driven by strong April-June quarter earnings. The company reported a 40.2 percent increase in consolidated net profit to Rs 58.06 crore and a 15.24 percent YoY rise in revenue to Rs 555.12 crore. Nuvama Institutional Equities anticipates that the upcoming festive and wedding season will boost market growth, particularly in sweets, with value growth expected to outpace volume growth from Q3FY25 onwards.
