April auto sales: Passenger vehicle sales slow down, 3-wheelers witness 57% growth, says FADA

Passenger vehicle retail sales: The sale of passenger vehicles (PV) in India slowed down in the first month of the current fiscal FY24 for the first time in eight months, potentially signalling a tapering demand in this segment.

According to the latest data shared by the Federation of Automobile Dealers’ Association (FADA), while 3-wheelers showed a growth of 57 per cent, 2-wheelers and passenger vehicles’ sales dropped by 7 per cent and 1 per cent, respectively. Overall, April saw a 4 per cent decline in total vehicle retails, signalling a slow start to FY24.

"Financial Year 2024 began on a subdued note, with the month of April experiencing a 4 per cent year-on-year (YoY) overall decline. Although the 3-wheeler segment enjoyed robust growth of 57 per cent YoY, tractor and CV segments only grew by a modest 1 per cent and 2 per cent, respectively. Meanwhile, the 2-wheeler and Passenger Vehicle categories experienced YoY degrowth of 7 per cent and 1 per cent, respectively,” said Manish Raj Singhania, FADA President.

Passenger vehicle segment

The Passenger Vehicle segment, which achieved record sales in FY23, slowed down in April, with retail sales decreasing by 1 per cent YoY. This was primarily due to last year's high base and the OBD 2A norms, which led to vehicle price increases and advanced purchases in March, FADA said.

"Although supplies are improving, there is a significant mismatch between customer demand and available inventory. Furthermore, entry-level PVs have fewer buyers, suggesting that customers at the bottom of the pyramid are still hesitant to upgrade from 2-wheelers to 4-wheelers," Singhania said. 

During the period, Maruti Suzuki sold a total of 1,09,919 units. Its market share was 38.89 per cent in March 2023 compared to 39.67 per cent. Its closest competitor Hyundai Motor sold 41,813 units in April. Tata Motors sold 41,374 units in the same month. This was followed by Mahindra & Mahindra with 29,545 units, and Kia Motors with 16,641 units.

PV OEM	April 2023	Market share	April 2022 market share
MARUTI SUZUKI INDIA LTD	1,09,919	38.89%	39.67%
HYUNDAI MOTOR INDIA LTD	41,813	14.79%	14.36%
Tata Motors Ltd	41,374	14.64%	12.85%
MAHINDRA & MAHINDRA LIMITED	29,545	10.45%	8.37%
KIA MOTORS INDIA PVT LTD	16,641	5.89%	5.97%

Unfavourable weather conditions in April, including untimely rains and hailstorms, cause crop damage in several states, exacerbating farmer concerns and potentially impacting entry-level 2-wheeler and passenger car sales, FADA opined.

Owing to these factors, FADA has maintained a cautious stance for the month of May. FADA said the upcoming marriage season in May may bring about a sales resurgence for two-wheelers, driven by an increase in customer inquiries.

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