Automakers see strong December sales growth, led by rural demand
Passenger vehicle sales of top automakers such as Maruti Suzuki, Mahindra, and Toyota Kirloskar Motor registered strong double-digit growth last month, despite customers typically shying away from purchases as they wait for the new year. This growth, according to automakers, was primarily driven by rural markets, in stark contrast to the ongoing weakness in urban demand, which continues to face challenges.
Automobile sales in December are usually sluggish, as customers often wait for the next year's models, prompting carmakers to scale back production and offer discounts to clear unsold vehicles. Maruti Suzuki saw a 24.18 percent year-on-year increase in sales, reaching 1.30 lakh units, as dispatches of hatchbacks and mini cars to dealers bounced back last month.
In contrast, Hyundai’s sales dropped by 1.3 percent year-on-year to 42,208 units. However, the company recorded its highest-ever domestic sales of 6.05 lakh units in CY 2024. Automakers in India report wholesales from factory gates to dealers on the first day of the month.
Tata Motors reported a 2 percent year-on-year increase in sales to 44,230 units last month. “We registered strong growth in our SUV portfolio with successful product introductions built on our proven multi-powertrain strategy,” said Shailesh Chandra, MD of Tata Motors Passenger Vehicles.
Mahindra & Mahindra, the SUV specialist, saw a significant 18 percent year-on-year jump in sales to 41,424 units in December, driven by strong demand for sports utility vehicles. Analysts attributed Mahindra's growth to the high demand for newer models such as the Thar ROXX and the XUV 3X0.
Toyota Kirloskar Motor also experienced a 16 percent year-on-year increase in sales to 24,887 units in December 2024, driven by strong demand for models like the Fortuner, Innova Crysta, and Innova Hycross. JSW MG Motor recorded a remarkable 55 percent year-on-year growth, reaching 7,516 units last month, led by its electric vehicles, especially the MG Windsor mid-size crossover.
However, sales at Nissan Motor India remained flat at 2,118 units in December 2024, though the company celebrated hitting 10,000 bookings for its facelifted Nissan Magnite, launched on October 4 last year.