The domestic wholesales of passenger vehicles surged 10.8% year-on-year to 3,70,786 units in February this year, as against 3,34,790 units in the corresponding period last year, according to the latest data by the Society of Indian Automobile Manufacturers (SIAM).

"Passenger vehicles, two-wheelers, and three-wheelers have posted growth in February 2024 compared to the previous year, while commercial vehicles have witnessed a slight de-growth. Overall robust GDP growth of the country in Q3 of 2023-24 has helped the auto sector," says Vinod Aggarwal, President, SIAM.

Amongst automakers, Maruti Suzuki, the country's largest automobile manufacturer sold 1,60,271 units in the domestic market, witnessing a growth of 8.6%, as compared to 1,47,467 units sold by the company in the same period last year. The manufacturer of Grand Vitara and WagonR also witnessed an increase in exports by 69% to 28,670 units as against 16,956 units exported in February last year.

Maruti was followed by South Korean automaker Hyundai Motor India, which sold 50,201 units in the domestic market, witnessing a growth of 6.8% YoY. The manufacturer of Creta and Venue sold 47,001 units in February last year. In terms of exports, the automaker continued to grapple with the Red Sea crisis with its exports declining marginally for the second month of CY24. The company's exports plummeted by 5% to 10,300 units as against 10,850 units in the same period last year.

Mahindra & Mahindra, the country's largest SUV (sports utility vehicle) manufacturer, sold 42,401 units in the domestic market, up 39.6% as against 30,358 units sold in February last year. The manufacturer of XUV700 and Thar, however, witnessed a decline in exports by 60% to 560 units as against 1,408 units exported in February last year.

Amongst other segments, the domestic wholesales of two-wheeler manufacturers grew by 34.6% to 15,20,761 units as against 11,29,661 units in the same period last year. The domestic sales in the country’s three-wheeler segment witnessed a moderate growth of 8.3% to 54,584 units as against 50,382 units in the same period last year.

Meanwhile, the passenger vehicles retail sales grew 12% year-on-year to 3.3 lakh units in February compared with 2.93 lakh units in the same month last year, Federation of Automobile Dealers Associations of India (FADA) said in its recent report. The domestic auto retail sales experienced a robust 13% growth in February across all vehicle categories. The two-wheeler market growth of 13% was driven by the rural sector, demand for premium models and strong performance of entry-level segments,

FADA, however, said that the elevated inventory levels in the PV segment, remaining at 50-55 days, pose a significant concern, necessitating OEMs to adjust production to reduce dealer carrying costs.

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.