Automobile sales are booming, and it appears that the sector is preparing to set a new record. Car wholesales in February of the fiscal year 2023–2024 have been robust, with the goal of breaking through to an amazing 42 lakh units for the first time. Major manufacturers such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra have been shipping a lot of cars to dealerships, which has helped to maintain a respectable level of industry inventory—enough for around a month's worth of sales.
When the data are broken down, 3.7 lakh passenger vehicles—which include MPVs, SUVs, sedans, and hatchbacks—were dispatched overall in February. This represents a significant 11% gain from the 3.3 lakh units in February 2023.
A prominent figure at Maruti Suzuki, Shashank Srivastava, stated that although the wholesale (total supplied to dealers) figures are good, the retail (real sold to customers) figures are slightly lower, coming in at about 3.3 lakh units as opposed to 3 lakh units the previous year. Approximately forty thousand pieces are currently in stock because that is the difference between what they delivered to dealers and what customers purchased. Currently, the industry's total stock level is 3 lakh units, or roughly 25–26 days' worth of inventory.
Looking at the wider picture, sales of passenger cars reached an all-time high in February of this year. The sector sent out 38.6 lakh units between April 2023 and February 2024, up from 35.5 lakh units over the same period in April 2022 and February 2023. This represents a solid growth of 9%. The industry projects sales to reach 42.1 lakh units for the entire year 2023–2024, with SUVs accounting for about 50.5% of that total.
SUVs are really driving this surge in sales for many companies. Maruti Suzuki saw a 9% growth in domestic sales, reaching almost 1.6 lakh units. Tata Motors even moved ahead of Hyundai, becoming the second-highest seller in February by sending out a little over 51,000 units, showing a growth of 20%. Hyundai's total sales were around 50,200 units, with a 7% growth, thanks to the popularity of SUV models like Creta, Exter, and Venue.
Mahindra & Mahindra showed a massive 40% growth, while Toyota (61%) and Honda Cars (17%) also saw good gains in their sales numbers. The overall trend in the industry is positive, with SUVs playing a big role in the increased demand for cars. It's safe to say that the car industry is revving up for an exciting and record-breaking year!
Also Read: From Sedans to SUVs: The Best Family Cars in India for Every Budget