Automakers end record-breaking FY24 on a high

Bengaluru: Indian carmakers largely reported higher sales in March 2024, and most ended the financial year 2024-25 (FY25) with record sales. Maruti Suzuki India Ltd, Hyundai Motors India Ltd, Tata Motors, and Toyota Kirloskar all reported their highest ever annual sales figures.

FY24 has been a boom year for the auto industry, backed by a frenzy for sports utility vehicles (SUVs) and increasing demand for electric vehicles (EVs). However, sales of entry level hatchbacks have lagged behind.

The country’s largest carmaker, Maruti Suzuki, reported a 10 per cent year-on-year increase in its March sales at 1.87 lakh units. In a statement on Monday, MSIL said that for FY24, it had crossed the annual total sales milestone of 20 lakh units with highest-ever yearly domestic sales of 17.93 lakh vehicles and record exports of 2.83 lakh units.

The biggest jump came from SUVs, a segment in which MSIL has been a late entrant compared to rivals.

Meanwhile, its biggest competitor Hyundai Motor India Ltd (HMIL) saw its sales move up 7 per cent in March, at 65,601 units. For FY24, the company recorded its best-ever sales at 7.78 lakh units, an increase of 8 per cent over FY23.

“In the domestic market, company sales surged by 8.3 per cent in 2023-24, against the previous year. These are the highest sales reported by the automaker since inception,” said HMIL Chief Operating Officer Tarun Garg said

Tata Motors said on Monday that its domestic wholesales in March rose 2 per cent year-on-year to 90,922 units. Sales of passenger vehicles, including EVs, in the domestic market, were at 50,297 units in March, up 14 per cent year-on-year. 

For the fiscal ended March 31, 2024, the company said its total wholesales in the domestic market stood at 9.49 lakh units, up 2 per cent from 9.32 lakh units in FY23.

“In FY24, the company’s passenger vehicles (including EVs), posted its third consecutive year of highest ever sales with wholesales of 5,73,495 units (up 6 per cent vs FY23) and retail sales growing around 10 per cent vs FY23,” Tata Motors Passenger Vehicles Managing Director Shailesh Chandra stated.

Although no new nameplate was launched, the company’s multi-powertrain strategy enabled it to deliver healthy growth with CNG and EV vehicles contributing nearly 29 per cent of overall sales, he added.

Chandra noted that passenger vehicle sales in India are projected to set a record in FY24 with over 4.2 million units sold, supported by strong growth in SUV sales which are expected to surpass 50 per cent of overall sales versus $43 in FY23.

“With sales of cars powered by traditional fuels (petrol and diesel) flattening, almost the entire incremental volume growth of FY24 is expected from rising sales of emission-friendly powertrains,” he noted.

Further, Chandra said, “Going forward, we expect the demand for passenger cars to remain strong, although the high base effect may keep the growth rate in single digit.”

Mahindra & Mahindra’s March sales increased 4 per centand for FY24 it reported a 28 per cent increase in passenger vehicle wholesales at 4.6 lakh units as against 3.59 lakh units in FY23.

Bengaluru-based Toyota Kirloskar Motor reported its highest-ever monthly wholesales at 27,180 units in March. FY24 was also a record for the company with wholesales of 2.63 lakh units, an increase of 48 per cent.