~Shift towards electric and safety trends signals positive outlook amid challenges~
New Delhi, 11th December 2023: India’s automobile industry demonstrated robust performance in the second quarter of the fiscal year 2023-24, as revealed in the latest quarterly report by Mazars in India. The passenger vehicles (PVs), commercial vehicles (CVs), and two-wheelers segments all witnessed significant trends and developments, reflecting the dynamic nature of the Indian automotive landscape.
Bharat Dhawan, Managing Partner, Mazars in India said, “In the ever-evolving landscape of India’s automotive sector, Q2 FY24 mirrors a compelling narrative of resilience and adaptation. Beyond the numbers, our report underscores the industry’s strategic embrace of electric mobility and heightened safety standards, setting the stage for a sustainable and innovative future. At Mazars in India, we take pride in illuminating these transformative insights, reinforcing our commitment to navigating complexities and fostering progress in the automotive ecosystem.”
Passenger Vehicles (PVs) Overview:
Production:
After a formidable fiscal year 2023, the PV production in India continued its upward trajectory, growing by 5.6% in Q2 FY24 to reach 12.8 lakh units. The Utility Vehicles (UVs) segment spearheaded this growth with an astonishing 19.9% surge, now constituting 55.6% of the overall PV production.
Domestic Sales:
Domestic PV sales hit an all-time high, increasing by 4.7% to 10.7 lakh units in Q2 FY24. The Sport Utility Vehicles (SUVs) category played a pivotal role, experiencing a remarkable 23.5% growth and claiming a dominant 59.5% share of the domestic sales.
Exports:
Passenger vehicle sales grew by a much faster pace than domestic sales, surging by 15.1% to 1.8 lakh units in Q2 FY24. While passenger cars exports grew by 24.1%, UVs exports faced a marginal contraction of 1.9%.
Market Share:
Maruti Suzuki retained its position as the market leader with a 42.2% share, followed by Hyundai Motor at 14.8%. Mahindra & Mahindra experienced the most significant increase, growing by 1.7% to reach a 10.4% market share.
Commercial Vehicles (CVs) Highlights:
Production:
CV production expanded by 8.8%, reaching approximately 2.7 lakh units in Q2 FY24. The Medium and Heavy Commercial Vehicles (M&HCVs) segment led the growth with a substantial 17.2% increase.
Domestic Sales:
Domestic CV sales grew by 6.9%, totaling about 2.5 lakh units in Q2 FY24. The M&HCVs segment experienced a robust 17.6% growth.
Exports:
CV exports witnessed a contraction of 24.0%, with LCVs exports declining by 25.1% and M&HCVs exports contracting by 20.7%.
Market Share:
Tata Motors maintained its lead with a 37.7% market share, while Ashok Leyland showed significant growth, increasing its share by 1.1%.
Two-Wheelers Sector Insights:
Production:
Two-wheeler production contracted by 1.5% in Q2 FY24, with motorcycles witnessing a decline of 2.6%. Mopeds and scooters experienced moderate growth.
Domestic Sales:
Domestic sales of two-wheelers shrank by 1.6%, with motorcycles seeing a decline of 2.9%. Scooters were the only segment with positive growth.
Exports:
Two-wheeler exports declined by 6.4%, with motorcycles and mopeds experiencing significant contractions.
Market Share:
Hero remained the market leader with a 30.7% share, followed by Honda. However, both lost market share during H1 FY24.
India’s automotive industry displayed positive momentum in Q2 FY24, marked by growth in EVs, safety trends, and a shift towards digitalization. Challenges persist in exports and specific segments, but the overall outlook remains optimistic, with substantial opportunities for growth and investment.
