With every car out of 4 sold in the nation, Tata Motors and Mahindra & Mahindra are making waves in the Indian auto sector, especially in the sports utility vehicles (SUVs) space. This is backed with high demand for the segment as well as increased popularity of emission-friendly vehicles.
New Launches, Growing Infra Contribute to the Growth Story
Both together hold an impressive market share of 24.5% in FY24, reveals Federation of Automobile Dealers Associations (FADA) data, which also reveals that the same figure was 22.5% in last fiscal.
The leader in the market, Maruti Suzuki, has seen a slight drop in FY24 to 40.7%, from FY23’s 40.9%.
Despite the drop from 50% to 48.7% market share in FY24, Japanese OEMs (Maruti Suzuki, Toyota, Honda, Nissan) still remain to be dominating the space.
On the back of multiple new launches, growing charging infrastructure, and CNG stations, the EV as well as CNG segment of Tata Motors has seen a significant growth in FY24.
Further propelling the numbers was the lower operating costs as well as growing environmentally friendly consciousness in customers.
Highlighting the aforementioned, Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said that “Customers’ rising preference for safe and green vehicles should result in double-digit growth for the sale of cars with emission-friendly powertrains supported by new launches and a stronger value proposition – emission-friendly, lower total cost of ownership, and equipped with smarter features”.
Growth Rates Across Categories
Clocking a growth rate of 8.45% in FY24, the Passenger Vehicle (PV) segment reached an all-time high of 39.5 lakh units.
This sales number was achieved due to the combination of improved vehicle availability, a compelling model mix, and strong demand for the SUV segment. Notably, SUV segment adds to the almost half of the total sales.
In FY24, the auto retail sales increased by 10.3%.
As compared to FY23’s 2.22 crore units, FY24 recorded total sales of 2.45 crore units. This included PVs, commercial vehicles, two-wheelers, three-wheelers, and tractors.
Out of all categories in FY24, the highest and lowest growth rate of 48.8% and 4.8% was reported in three-wheelers segment and commercial vehicle segment respectively.
