Passenger vehicle Wholesales in February

Driven by a desire for SUV models, 3.73 lakh PVs—an 11% increase—were shipped in February of this year compared to 3.55 lakh units in the same month last year. Industry insiders warn against dealership inventory pile-ups in the wake of an increased car supply. Except for Royal Enfield, all two-wheeler manufacturers saw double-digit YoY growth in wholesale prices. Sales of commercial vehicles stayed flat.

New Delhi: There was a favorable trend in February and green dispatches of passenger vehicles (PVs) and two-wheelers. Nonetheless, there was little increase in commercial vehicle (CV) sales.
Industry estimates place the number of PVs delivered in February of this year at 3.73 lakh, up 11% from 3.55 lakh in February 2023.
Passenger vehicle retail sales are predicted to have increased by 11% in February to 3.35 lakh units from 3.01 lakh in the same month the previous year.

Senior Executive Director of Marketing & Sales of Maruti Suzuki, Shashank Srivastava, stated that February 2024 marks the 14th consecutive month of the highest-ever wholesales, beginning in January 2023.
He continued, saying that February 2024 is also the third month with the largest wholesales this year, following the delivery of 3.94 lakh units in January 2024 and 3.91 lakh units in October 2023.
As per Srivastava, the current Passenger vehicle inventory of the dealerships is approximately 3 lakh units, corresponding to approximately 25 to 26 days of vehicle supply in the industry.
Industry insiders warn against dealership inventory pile-ups in the wake of an enhanced car supply.

Passenger vehicle dispatches for the April–February period are 38.59 lakh units, up 9% from 35.53 lakh units in the same period last year.
According to Srivastava’s predictions, the Passenger vehicle segment is predicted to achieve sales of 42.1 lakh units in FY 2023–24, up from 38.9 lakh in FY 2022–23. This is an 8% annual growth.
A segment-by-segment report of vehicle dispatches in February 2024 is provided below.

Passenger vehicle

Due to the increased demand for SUV models, every OEM released a green report on their dispatches. With 1.60 lakh units sold domestically in February, market leader Maruti Suzuki saw a 9% YoY increase.
Nowadays, slightly more than 50% of all sales in the sector are SUVs.
Maruti Suzuki’s Srivastava observed that the increase in the rural sector is still marginally greater than the rise in the urban sector. This trend is probably going to continue since infrastructure spending, rural incomes, and the monsoon are all expected to rise more sharply. Despite the persistently high rate of food inflation, attitude is generally favorable.

Passenger vehicle

Owing to the surge in demand for SUV models, all OEMs published green dispatch reports. In February, Maruti Suzuki, the market leader, sold 1.60 lakh vehicles domestically, a 9% YoY rise.
SUVs now account for slightly more than 50% of total sales in the industry.
According to Srivastava of Maruti Suzuki, the growth in the rural sector is still somewhat higher than the rise in the urban sector. Given the anticipated substantial increases in infrastructure spending, rural incomes, and the monsoon, this trend is likely to continue. Though food inflation continues to be high, attitudes are largely positive.

Vice President of Sales, Service, and Used Car Business at Toyota Kirloskar Motor, Sabari Manohar, stated: “We are seeing a steady increase in demand as well as high-quality customer inquiries from all across the region. Notably, the SUV and MUV models are leading the way in this increase in demand.
Three-quarters of MG Motor India’s sales are made up of electric cars (EVs). As a result of different worldwide events, the corporation stated that it is preparing to work on “potential logistics issues due to disruption in global shipping.”

Wholesale sales of two-wheelers, except Royal Enfield, increased by double digits year over year.
The industry leader Hero MotoCorp recorded a 16% increase in sales in February, recording 4.45 lakh units sold, compared to 3.82 lakh in the same month the previous year.

Hero MotoCorp stated, “The company expects the positive trend to continue in the coming months, on the back of favorable economic indicators.” The company’s February volumes “indicate the continuously improving consumer sentiments.“
The manufacturer of two-wheelers introduced the Maverick 440, whose deliveries are scheduled to start in April, and began selling its recently debuted motorcycle, the Xtreme 125R, throughout the month. This is consistent with their plan to broaden their line of luxury products.
By the middle of this year, Hero claims to be increasing the production of the Harley-Davidson X440 and Maverick 440.

In February, Suzuki Motorcycle India announced that it had produced one million units, using all of the yearly production capacity of its facilities in less than a year. During the month, the company sold 83,304 units in the nation. According to data from Elara Capital, in February 2024, there was a 24% year-over-year rise in the number of registrations for electric two-wheeler high-speed scooters. This year’s February gained one extra day, which helped the growth a little.

However, at 81,963 units, it was unchanged from January 2024.

Commercial automobiles

The industry leader Tata Motors reported February 2024 dispatches down 4% YoY to 33,567 units. All vehicle categories—aside from passenger carriers—were highlighted in red.
Tata sold 13,701 SCV freight and pickup units in February 2024. HCV trucks sold 10,091 units, L&MCV trucks sold 5,083 units, and passenger carriers sold 4,692 units.
Likewise, Ashok Leyland’s wholesales saw a 6% decline.