India's Auto Industry Reports Resilient Growth Across Segments In Q2 FY24
India's automotive sector showcased notable resilience and adaptation during the second quarter of the fiscal year 2023–24, according to Mazars in India's latest quarterly report. The passenger vehicles (PVs), commercial vehicles (CVs) and two-wheelers segments displayed significant trends and developments, shedding light on the dynamic nature of the Indian automotive landscape.
Bharat Dhawan, Managing Partner, Mazars in India, said, "In the ever-evolving landscape of India's automotive sector, Q2 FY24 mirrors a compelling narrative of resilience and adaptation. Beyond the numbers, our report underscores the industry's strategic embrace of electric mobility and heightened safety standards, setting the stage for a sustainable and innovative future."
Passenger Vehicles (PVs) Overview:
Production: PV production in India rose by 5.6 per cent in Q2 FY24, reaching 12.8 lakh units. The Utility Vehicles (UVs) segment led with a 19.9 per cent surge, constituting 55.6 per cent of overall PV production.
Domestic Sales: Domestic PV sales reached an all-time high, growing by 4.7 per cent to 10.7 lakh units in Q2 FY24. SUVs played a pivotal role, experiencing a remarkable 23.5 per cent growth.
Exports: Passenger vehicle exports surged by 15.1 per cent to 1.8 lakh units in Q2 FY24. While passenger car exports grew by 24.1 per cent, UV exports faced a marginal contraction of 1.9 per cent.
Market Share: Maruti Suzuki retained a 42.2 per cent market share, followed by Hyundai Motor at 14.8 per cent. Mahindra & Mahindra increased by 1.7 per cent to reach a 10.4 per cent market share.
Commercial Vehicles (CVs) Highlights:
Production: CV production expanded by 8.8 per cent, reaching 2.7 lakh units in Q2 FY24. The Medium and Heavy Commercial Vehicles (M&HCVs) segment led with a substantial 17.2 per cent increase.
Domestic Sales: Domestic CV sales grew by 6.9 per cent, totaling about 2.5 lakh units in Q2 FY24. The M&HCVs segment experienced a positive 17.6 per cent growth.
Exports: CV exports contracted by 24.0 per cent, with LCV exports declining by 25.1 per cent and M&HCV exports contracting by 20.7 per cent.
Market Share: Tata Motors maintained a lead with a 37.7 per cent market share, while Ashok Leyland increased its share by 1.1 per cent.
Two-Wheeler Sector Insights:
Production: Two-wheeler production contracted by 1.5 per cent in Q2 FY24, with motorcycles declining by 2.6 per cent. Mopeds and scooters experienced moderate growth.
Domestic Sales: Domestic sales of two-wheelers shrank by 1.6 per cent, with motorcycles seeing a decline of 2.9 per cent. Scooters were the only segment with positive growth.
Exports: Two-wheeler exports declined by 6.4 per cent, with motorcycles and scooters experiencing major contractions.
Market Share: Hero remained the market leader with a 30.7 per cent share, followed by Honda, both losing market share during H1 FY24.
India's automotive industry displayed positive momentum in Q2 FY24, marked by growth in EVs, safety trends and a shift towards digitalisation. Although there are still issues with exports and certain markets, overall prospects are still positive and present significant growth and investment opportunities.
