Shifting Gears: Mixed Trends in India's Automotive Dispatches

Leading automakers in India, including Maruti Suzuki and Hyundai, recorded a decline in vehicle dispatches in March 2024 due to inventory adjustments and softened demand. Meanwhile, Mahindra & Mahindra and Tata Motors saw growth driven by SUV models. The industry anticipates moderate growth attributed to economic factors and customer preferences.

Major automakers Maruti Suzuki and Hyundai Motor India have reported a year-on-year decline in vehicle dispatches to dealers for March 2024, primarily due to inventory corrections and reduced demand. Conversely, Mahindra & Mahindra and Tata Motors experienced an increase in domestic passenger vehicle dispatches, fueled by the popularity of their SUV models.

Maruti Suzuki witnessed a slight 1% drop in domestic passenger vehicle dispatches, recording 1,50,743 units compared to the previous year. The company achieved a significant milestone, selling over 20 lakh units for the second consecutive year, despite the downtrend in mini and compact car sales. The firm is now focusing on reducing inventory levels while targeting retail sales.

Meanwhile, industry heavyweights foresee limited growth for the fiscal year FY26, projecting a 1-2% increase in volumes. Factors such as consumption growth, inflation, and infrastructure spending are anticipated to shape demand. Automakers remain optimistic, banking on SUVs, CNG, and EV expansion alongside strategic product portfolios.

(With inputs from agencies.)