Indian Autos Market lost momentum in July. Sales were 346,392 (-1.6%), ending a 6-months growth string. 2024 YTD figures reached 2,53 million (+5.4%). Toyota surged in double-digits and advanced one spot (+35.5%).
Market Trend and Outlook
India’s economy grew at a faster-than-expected pace of 7.8% year-on-year in the first three months of 2024, driven by a strong performance in the manufacturing sector. This growth builds on the strong momentum of the past three years, with GDP growing on average at 8.1%, the highest in the Asia-Pacific region.
Capital expenditure is scheduled to increase to Indian rupees (INR) 11 trillion, or about 3.4% of GDP in fiscal 2025 (April 1, 2024, to March 31, 2025), with improved quality of government spending as its historically weak fiscal setting improves.
S&P Global expects GDP to grow 7.0% over the next three years, enabling the government to follow a gradual path of fiscal consolidation, reducing the general deficit from 7.9% of GDP in fiscal 2025 to 6.8% by fiscal 2028.
Despite the positive economic outlook, the Indian auto market suffered a mild slowdown in July 2024, interrupting a 6-months positive string and reaching 346,392 new registrations (+2.6%). YTD figures at 2,53 million, were up 5.4% from the prior year.
Looking at cumulative data up to July 2024, brand-wise Maruti still led the rankings with 1,05 million sales (+3.5%), followed by Hyundai with 353,457 (+3.5%), Tata with 337,849 (+4.7%), Mahindra with 291,971 (+24.3%) and Toyota -up 1 spot- with 159,704 (+35.5%).
Kia ranked in 6th, falling 1 spot with 146,644 sales (-6.1%), followed by Honda at 41,495 sales (+2.7%), MG with 31,475 sales (-7.6%), followed by Renault with 25,932 new registrations (-21.5%) and Volkswagen -up 1 spot- in 10th with 22,804 units sold (-2.9%).
Looking at the top selling models, reported in the dedicate article, the Tata Punch became the best seller jumping 9 spots and rising 59.8%. Maruti Wagon R followed in 2nd, despite a 5.2% loss in volume.
Medium-Term Market Trend
The Indian autos market alternated positive years with negative ones, from 2010 to 2013, reaching a minimum in 2011 at 2.5 million and a peak in 2012 at 2.8 million sales. 5 years of consecutive growth followed, with a maximum reached in 2018 at 3.4 million registrations.
In 2019 started a negative trend that would continue through the covid pandemic moving sales from nearly 3 million to 2.5 million at the end of 2020.
The fall in sales in the Indian market was not due to a structural problem in the economy, in fact sales started to recover extremely quickly after the pandemic. In 2021 they rose above the 3 million mark (+26.6%) and in 2022 they grew another 23.1% to 3.82 million, setting a new all-time high. In 2023 the market closed with a fully positive year, reporting 4.21 million sales (+8.3%).
This confirms a common trend in asian countries that, unlike European ones, are recovering well from the pandemic and are responding outstandingly to the change in market sentiment cause by a shift to Evs and a disruption in the supply chains caused by lack of raw materials for microchip production.
Tables with sales figures
In the tables below we report sales for top 10 Brands, top 10 Manufacturer Groups and top 10 Models.
