Passenger vehicle dispatches see muted growth in June as high base effect kicks in

Passenger vehicle wholesales saw a marginal growth of 4% in June on account of high base effect and muted demand due to severe heatwave conditions in several parts of the country.

Overall passenger vehicle dispatches last month stood at 3,40,784 units, a growth of 3.67% compared with 3,28,710 units in June 2023.

Market leader Maruti Suzuki India said its total domestic passenger vehicle sales stood at 1,37,160 units last month compared to 1,33,027 units in the year-ago month, a growth of 3%.

Sales of mini-segment cars, comprising Alto and S-Presso, declined to 9,395 units from 14,054 units in June 2023. Sales of compact cars, including Baleno, Celerio, Dzire, Ignis, Swift, Tour S and WagonR, stood at 64,049 units against 64,471 units in the year-ago month.

Utility vehicles, consisting of Brezza, Grand Vitara, Ertiga and XL6 clocked sales of 52,373 units last month compared to 43,404 units a year earlier. The company currently has a network stock of 37-38 days spread across the country, Maruti Suzuki India Senior Executive Officer (Marketing & Sales) Partho Banerjee said.

Rival Hyundai Motor India said its domestic sales remained flat at 50,103 units last month as compared to 50,001 units in the year-ago period.

Tata Motors said sales of passenger vehicles, including electric vehicles, in the domestic market, were lower by 8% at 43,624 units in June as compared with 47,359 units in the year-ago month.

“After a boost in demand in the first half of April due to festivities in some parts of the country, the passenger vehicle industry saw a decline in retails [registrations] in the months of May and June, influenced by the general elections and heat waves across the country,” Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said.

Going forward, the company foresees recovery of demand, as enquiries have remained strong despite low retails in the past two months, he added.

This strong enquiry pipeline, in addition to the onset of the festive season from August, augurs well for the industry, Chandra said.

Mahindra & Mahindra said its passenger vehicle sales in the domestic market rose 23% to 40,022 units last month against 32,588 units in June last year.

Toyota Kirloskar Motor reported its best-ever monthly sales at 27,474 units in June. The company’s total dispatches to dealers increased by 40% last month to 27,474 units, as compared to 19,608 units in June 2023.

JSW MG Motor India reported a 9% year-on-year decline in retail sales at 4,644 units in June. The automaker had retailed 5,125 units in June 2023.

In the two-wheeler space, Bajaj Auto said its total domestic sales rose 8% to 2,16,451 units in the last month compared to 1,99,983 units sold in the same month last year.

TVS Motor Company said its domestic two-wheeler wholesales grew 8% year on year from 2,35,833 units in June 2023 to 2,55,734 units in June 2024. Suzuki Motorcycle India reported 13% year-on-year growth in domestic sales at 71,086 units in June.