Favourable Market Sentiment Boosts Indian Auto Retail Sector Amid Election Uncertainty
New Delhi, 8th May 2024: The Federation of Automobile Dealers Associations (FADA) has reported remarkable growth in India’s auto retail sector for April 2024. The industry saw a 27% year-over-year (YoY) increase, with combined March-April figures registering a 14% rise. Growth across vehicle segments was varied, with the two-wheeler (2W) category leading at 33%, while commercial vehicles (CV) grew modestly at 2%.
Growth Highlights Across Segments:
- Two-Wheelers (2W): The segment achieved significant growth due to the increasing popularity of 125cc models, stable fuel prices, and improved supply chains, coupled with rising demand linked to seasonal festivities and wedding season activities.
- Three-Wheelers (3W): Witnessed a 9% YoY rise, reflecting steady improvement in this sector.
- Passenger Vehicles (PV): Marked a 16% YoY growth, driven by new model launches and festive buying trends during events like Navratri and Gudi Padwa.
- Tractors (Trac): Increased by 1%, primarily due to steady demand in rural markets.
- Commercial Vehicles (CV): While experiencing a modest 2% YoY growth, the segment faced mixed conditions, with bulk and corporate deals, particularly in the school bus segment, buoying demand despite the adverse effects of election uncertainty.
Market Drivers and Challenges:
According to FADA President Manish Raj Singhania, positive market sentiments were fuelled by stable fuel prices, a promising monsoon forecast, and consumer confidence linked to seasonal festivals and marriages. However, the report highlighted challenges affecting the market:
- Election Uncertainty: Ongoing political uncertainty is leading to delayed consumer decisions and expansion plans.
- Financial Constraints: Limited financing options and financial challenges hinder purchasing capacity, especially in rural areas.
- Overcapacity and Heat: The CV segment’s overcapacity combined with extreme summer temperatures may further slow growth.
Near-Term Outlook:
The outlook remains cautiously optimistic due to rising interest in new model launches and strategic planning in the 2W and PV segments. However, persistent challenges require careful monitoring. Seasonal market changes, such as fewer marriages and fewer major festivals, combined with election uncertainty, financial constraints, and competitive discounting, may impact profitability and demand. Nevertheless, bulk deals in the CV segment and renewed consumer interest in new electric models offer hope for continued momentum.
Member Survey Insights:
FADA’s survey of members provided a nuanced view of the market:
- Liquidity: Neutral (46.46%), Good (35.84%), Bad (17.70%)
- Sentiment: Neutral (45.58%), Good (34.07%), Bad (20.35%)
May 2024 Expectations:
- Growth: 50%
- Flat: 33.63%
- De-growth: 16.37%
Despite the challenges, the industry remains hopeful that strategic navigation will steer the sector toward sustainable growth.
Chart showing Vehicle Retail Data for Apr’24
All India Vehicle Retail Data for Apr’24
| CATEGORY | APR’24 | MAR’24 | APR’23 | MoM % | YoY % |
| 2W | 16,43,510 | 15,29,875 | 12,33,763 | 7.43% | 33.21% |
| 3W | 80,105 | 1,05,222 | 73,310 | -23.87% | 9.27% |
| E-RICKSHAW(P) | 31,808 | 37,378 | 31,591 | -14.90% | 0.69% |
| E-RICKSHAW WITH CART (G) | 4,223 | 5,087 | 2,701 | -16.98% | 56.35% |
| THREE-WHEELER (GOODS) | 9,072 | 14,433 | 8,147 | -37.14% | 11.35% |
| THREE-WHEELER (PASSENGER) | 34,938 | 48,223 | 30,817 | -27.55% | 13.37% |
| THREE-WHEELER (PERSONAL) | 64 | 101 | 54 | -36.63% | 18.52% |
| PV | 3,35,123 | 3,22,345 | 2,89,056 | 3.96% | 15.94% |
| TRAC | 56,625 | 78,446 | 55,857 | -27.82% | 1.37% |
| CV | 90,707 | 91,289 | 88,663 | -0.64% | 2.31% |
| LCV | 47,009 | 49,332 | 45,191 | -4.71% | 4.02% |
| MCV | 6,704 | 6,324 | 6,651 | 6.01% | 0.80% |
| HCV | 32,191 | 30,394 | 33,293 | 5.91% | -3.31% |
| Others | 4,803 | 5,239 | 3,528 | -8.32% | 36.14% |
| Total | 22,06,070 | 21,27,177 | 17,40,649 | 3.71% | 26.74% |
Source: FADA Research
Motor Vehicle Road Tax Collection (in Rs Crore)
| Apr’24 | Mar’24 | Apr’23 | MoM% | YoY% | |
| Motor Vehicle Road Tax Collection | 7,528 | 7,633 | 6,012 | -1.4% | 25.2% |
Source: FADA Research
OEM wise Market Share Data for the Month of Apr’24 with YoY comparison
| Two-Wheeler OEM | APR’24 | Market Share (%) APR’24 | APR’23 | Market Share (%) APR’23 |
| HERO MOTOCORP LTD | 5,11,599 | 31.13% | 4,11,206 | 33.33% |
| HONDA MOTORCYCLE AND SCOOTER INDIA (P) LTD | 3,94,147 | 23.98% | 2,44,732 | 19.84% |
| TVS MOTOR COMPANY LTD | 2,80,204 | 17.05% | 2,08,818 | 16.93% |
| BAJAJ AUTO GROUP | 1,95,842 | 11.92% | 1,46,538 | 11.88% |
| BAJAJ AUTO LTD | 1,95,842 | 11.92% | 1,46,165 | 11.85% |
| CHETAK TECHNOLOGY LIMITED | – | 0.00% | 373 | 0.03% |
| SUZUKI MOTORCYCLE INDIA PVT LTD | 77,898 | 4.74% | 61,957 | 5.02% |
| ROYAL-ENFIELD (UNIT OF EICHER LTD) | 72,056 | 4.38% | 61,876 | 5.02% |
| INDIA YAMAHA MOTOR PVT LTD | 55,956 | 3.40% | 38,189 | 3.10% |
| OLA ELECTRIC TECHNOLOGIES PVT LTD | 33,963 | 2.07% | 22,068 | 1.79% |
| ATHER ENERGY PVT LTD | 4,062 | 0.25% | 7,802 | 0.63% |
| PIAGGIO VEHICLES PVT LTD | 2,855 | 0.17% | 2,971 | 0.24% |
| CLASSIC LEGENDS PVT LTD | 2,778 | 0.17% | 2,311 | 0.19% |
| GREAVES ELECTRIC MOBILITY PVT LTD | 2,511 | 0.15% | 551 | 0.04% |
| Others Including EV | 9,639 | 0.59% | 24,744 | 2.01% |
| Total | 16,43,510 | 100% | 12,33,763 | 100% |
Source: FADA Research
Disclaimer:
1- The above numbers do not have figures from TS & LD.
2- Vehicle Retail Data has been collated as on 06.05.24 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,360 out of 1,503 RTOs.
3- Others include OEMs accounting less than 0.1% Market Share.
| Three-Wheeler OEM | APR’24 | Market Share (%) APR’24 | APR’23 | Market Share (%) APR’23 |
| BAJAJ AUTO LTD | 29,932 | 37.37% | 26,584 | 36.26% |
| PIAGGIO VEHICLES PVT LTD | 5,886 | 7.35% | 6,134 | 8.37% |
| MAHINDRA & MAHINDRA LIMITED | 3,813 | 4.76% | 4,222 | 5.76% |
| MAHINDRA LAST MILE MOBILITY LTD | 3,635 | 4.54% | – | 0.00% |
| MAHINDRA & MAHINDRA LIMITED | 171 | 0.21% | 3,911 | 5.33% |
| MAHINDRA REVA ELECTRIC VEHICLES PVT LTD | 7 | 0.01% | 311 | 0.42% |
| YC ELECTRIC VEHICLE | 2,938 | 3.67% | 2,839 | 3.87% |
| SAERA ELECTRIC AUTO PVT LTD | 1,966 | 2.45% | 1,856 | 2.53% |
| ATUL AUTO LTD | 1,762 | 2.20% | 1,563 | 2.13% |
| DILLI ELECTRIC AUTO PVT LTD | 1,610 | 2.01% | 1,730 | 2.36% |
| TVS MOTOR COMPANY LTD | 1,588 | 1.98% | 1,141 | 1.56% |
| MINI METRO EV L.L.P | 962 | 1.20% | 1,037 | 1.41% |
| UNIQUE INTERNATIONAL | 956 | 1.19% | 883 | 1.20% |
| ENERGY ELECTRIC VEHICLES | 954 | 1.19% | 677 | 0.92% |
| HOTAGE CORPORATION INDIA | 883 | 1.10% | 802 | 1.09% |
| Others including EV | 26,855 | 33.52% | 23,842 | 32.52% |
| Total | 80,105 | 100% | 73,310 | 100% |
Source: FADA Research
Disclaimer:
- The above numbers do not have figures from TS & LD.
- Vehicle Retail Data has been collated as on 06.05.24 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,360 out of 1,503 RTOs.
- Others include OEMs accounting less than 1% Market Share.
| Commercial Vehicle OEM | APR’24 | Market Share (%) APR’24 | APR’23 | Market Share (%) APR’23 |
| TATA MOTORS LTD | 32,194 | 35.49% | 33,787 | 38.11% |
| MAHINDRA & MAHINDRA LIMITED | 20,620 | 22.73% | 17,000 | 19.17% |
| ASHOK LEYLAND LTD | 16,423 | 18.11% | 16,777 | 18.92% |
| VE COMMERCIAL VEHICLES LTD | 6,861 | 7.56% | 7,509 | 8.47% |
| MARUTI SUZUKI INDIA LTD | 3,389 | 3.74% | 3,576 | 4.03% |
| DAIMLER INDIA COMMERCIAL VEHICLES PVT. LTD | 1,983 | 2.19% | 1,901 | 2.14% |
| FORCE MOTORS LIMITED, A FIRODIA ENTERPRISE | 1,834 | 2.02% | 1,167 | 1.32% |
| SML ISUZU LTD | 1,076 | 1.19% | 1,182 | 1.33% |
| Others | 6,327 | 6.98% | 5,764 | 6.50% |
| Total | 90,707 | 100.00% | 88,663 | 100.00% |
Source: FADA Research
Disclaimer:
1- The above numbers do not have figures from TS & LD.
2- Vehicle Retail Data has been collated as on 06.05.24 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,360 out of 1,503 RTOs.
| PV OEM | APR’24 | Market Share (%) APR’24 | APR’23 | Market Share (%) APR’23 |
| MARUTI SUZUKI INDIA LTD | 1,36,915 | 40.86% | 1,11,004 | 38.40% |
| HYUNDAI MOTOR INDIA LTD | 48,050 | 14.34% | 42,803 | 14.81% |
| TATA MOTORS LTD | 45,930 | 13.71% | 41,990 | 14.53% |
| MAHINDRA & MAHINDRA LIMITED | 36,775 | 10.97% | 30,859 | 10.68% |
| KIA MOTORS INDIA PVT LTD | 19,114 | 5.70% | 17,061 | 5.90% |
| TOYOTA KIRLOSKAR MOTOR PVT LTD | 18,999 | 5.67% | 14,521 | 5.02% |
| SKODA AUTO VOLKSWAGEN GROUP | 6,462 | 1.93% | 7,033 | 2.43% |
| SKODA AUTO VOLKSWAGEN INDIA PVT LTD | 6,415 | 1.91% | 6,880 | 2.38% |
| VOLKSWAGEN AG/INDIA PVT. LTD. | – | 0.00% | 3 | 0.00% |
| AUDI AG | 44 | 0.01% | 150 | 0.05% |
| SKODA AUTO INDIA/AS PVT LTD | 3 | 0.00% | – | 0.00% |
| HONDA CARS INDIA LTD | 6,069 | 1.81% | 5,689 | 1.97% |
| MG MOTOR INDIA PVT LTD | 4,058 | 1.21% | 4,357 | 1.51% |
| RENAULT INDIA PVT LTD | 4,012 | 1.20% | 4,184 | 1.45% |
| NISSAN MOTOR INDIA PVT LTD | 2,200 | 0.66% | 2,291 | 0.79% |
| MERCEDES -BENZ GROUP | 1,522 | 0.45% | 1,238 | 0.43% |
| MERCEDES-BENZ INDIA PVT LTD | 1,333 | 0.40% | 1,183 | 0.41% |
| MERCEDES -BENZ AG | 178 | 0.05% | 54 | 0.02% |
| DAIMLER AG | 11 | 0.00% | 1 | 0.00% |
| BMW INDIA PVT LTD | 1,185 | 0.35% | 923 | 0.32% |
| FORCE MOTORS LIMITED, A FIRODIA ENTERPRISE | 777 | 0.23% | 521 | 0.18% |
| PCA AUTOMOBILES INDIA PVT LTD | 515 | 0.15% | 798 | 0.28% |
| FIAT INDIA AUTOMOBILES PVT LTD | 368 | 0.11% | 694 | 0.24% |
| JAGUAR LAND ROVER INDIA LIMITED | 256 | 0.08% | 170 | 0.06% |
| VOLVO AUTO INDIA PVT LTD | 139 | 0.04% | 158 | 0.05% |
| BYD INDIA PRIVATE LIMITED | 138 | 0.04% | 164 | 0.06% |
| Others | 1,639 | 0.49% | 2,598 | 0.90% |
| Total | 3,35,123 | 100% | 2,89,056 | 100% |
Source: FADA Research
Disclaimer:
1. The above numbers do not have figures from TS & LD.
2. Vehicle Retail Data has been collated as on 06.05.24 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,360 out of 1,503 RTOs.
| Tractor OEM | APR’24 | Market Share (%) APR’24 | APR’23 | Market Share (%)APR’23 |
| MAHINDRA & MAHINDRA LIMITED (TRACTOR) | 12,651 | 22.34% | 12,633 | 22.62% |
| MAHINDRA & MAHINDRA LIMITED (SWARAJ DIVISION) | 11,028 | 19.48% | 9,558 | 17.11% |
| INTERNATIONAL TRACTORS LIMITED | 7,420 | 13.10% | 6,963 | 12.47% |
| ESCORTS LIMITED (AGRI MACHINERY GROUP) | 5,866 | 10.36% | 6,247 | 11.18% |
| TAFE LIMITED | 5,622 | 9.93% | 6,749 | 12.08% |
| JOHN DEERE INDIA PVT LTD(TRACTOR DEVISION) | 4,772 | 8.43% | 4,554 | 8.15% |
| EICHER TRACTORS | 3,881 | 6.85% | 3,217 | 5.76% |
| CNH INDUSTRIAL (INDIA) PVT LTD | 2,414 | 4.26% | 2,266 | 4.06% |
| KUBOTA AGRICULTURAL MACHINERY INDIA PVT.LTD. | 1,077 | 1.90% | 1,318 | 2.36% |
| V.S.T. TILLERS TRACTORS LIMITED | 163 | 0.29% | 309 | 0.55% |
| FORCE MOTORS LIMITED, A FIRODIA ENTERPRISE | 151 | 0.27% | 262 | 0.47% |
| Others | 1,580 | 2.79% | 1,781 | 3.19% |
| Total | 56,625 | 100% | 55,857 | 100% |
Source: FADA Research
Disclaimer:
1- The above numbers do not have figures from TS & LD.
2- Vehicle Retail Data has been collated as on 06.05.24 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,360 out of 1,503 RTOs.
