New Delhi [India], April 2 : Nomura's market research for auto sector reveals that in March 2024, India's passenger vehicle segment grew by 10% while there was a decline of 11% in sales of commercial vehicles. The two-wheeler segment registered a positive growth with 20% gain while the tractor sales declined by 22%, YoY in March 2024.
The electric vehicle share in the two wheeler industry is up by 9% in March 2024, hoping expectations of a reduction in FAME subsidy from April 2024. The Ola leads the sales of two wheeler EV segment followed by TVS and Bajaj Auto. The Electric Vehicle sales of Tata Motors remained flat at 6.7K units and registered a marginal drop of 3% from the previous year.
The emerging trend from the Nomura report shows that the two wheeler segment of Electric Vehicle in India is expanding with a much faster rate than the four wheelers. The report also highlights that the Medium and the Heavy commercial vehicle segment showed a negative growth with sales declining by 11% in March 2024 as compared to the previous year.
In the four wheeler segment, market leader Maruti Suzuki's domestic sales registered a YoY 15% growth to reach at 153K in March, 2024, excluding the light commercial vehicles. Tata Motors sold 50K passenger vehicles during the same period which is 14% more than the previous year. However, overall combined passenger and commercial vehicle segment of Tata Motors grew by 2%. Toyota India registered a surprising growth of 45.6% YoY and sold 27K vehicles, in 2023 March the figure was 18.7K.
The overall sales of Mahindra & Mahindra Motors registered a decline of 7% in which sales of tractors dropped majorly with a decline of 26% YoY. According to the management of the Tata Motors the demand for passenger cars will remain strong, although the high base effect may keep the growth rate in single-digit. While the consumer preference for green vehicles will result in double-digit growth for the sale of cars.
TVS Motors sold 262.6K two-wheelers domestically, which is 8.5% more than the previous year. The company also exported 92K units which is 22.6% up from previous year. TVS sold a total of 354.5K vehicles. Honda Motors (HMCL's) sales were down 6% at 490K, Nomura says Honda management expects a double-digit revenue growth in FY25, primarily led by 125cc segment and EV market share gain due to new launches. Royal Enfield's volumes were up 5% YoY to 75.5K units.
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