Sales of passenger vehicles and two-wheelers saw significant growth in February 2024. According to a report by LiveMint, carmakers in India produced a record number of vehicles, leading to shorter waiting periods for customers. The retail demand played a crucial role in boosting vehicle production.
The report highlighted that carmakers are closely monitoring market demand as inventories have already reached 26 days. With OEMs fulfilling pending orders, the pace of fresh demand will determine the stock levels in dealerships. Maruti Suzuki’s Senior Executive Director stated that the industry anticipates an 8.1% growth rate in the current financial year.
In February 2024, the passenger vehicle segment witnessed wholesales of 373,177 units, marking an 11.3% year-on-year growth. Despite retail numbers being lower than wholesale figures, the difference of about 40,000 units has been added to the stock. SUVs have played a significant role in driving growth in the passenger vehicle segment, constituting more than 50% of all sales.
Leading two-wheeler manufacturers like Hero MotoCorp and TVS Motor Company reported strong double-digit growth in February 2024. However, the report stated that registrations grew at a slower pace, resulting in inventory buildup at showrooms. In the electric two-wheeler segment, sales remained flat in February 2024, with high-speed electric two-wheeler registrations showing a 24% increase year-on-year.
The launch of new models and improved supply chain availability contributed to the strong growth in the automotive sector. As demand continues to rise, automakers are optimistic about ending the financial year on a positive note. The industry’s focus remains on meeting customer demands efficiently and maintaining a balance between production and retail sales to avoid inventory pile-ups.
