Positive growth in 2-wheeler and tractor sales shows growth momentum in Indian economy

NEW DELHI: The auto sale number for April 2024, shows that the overall sale of passenger vehicle has declined as compared to March, except Mahindra who have shown a marginal growth of 3 per cent.

But on a yearly basis big auto makers have increased their sale in FY24. As compared to FY23, Maruti Suzuki sale has gone up by 5 per cent, Tata motors by 2 per cent while Mahindra showed an impressive growth of 13 per cent increase in the passenger vehicle segment.

Maruti Suzuki sold 1,68,089 passenger vehicles in April as compared to 1,87,196 vehicle in March, a 10 per cent decline. Tata motors sale also declined by 5 per cent in April to 47,983 PVs from 50,297 PVs in March.

Mahindra however has gained and registered a positive growth of 3 percent even in April with passenger vehicle sales at 70,471 up from 68,413 in March. In contrast the two-wheelers segment has registered a positive growth even in the month of April 2024 as compared to March. Bajaj, Hero, TVS and Eicher all have shown a growth of 6, 9, 8 and 8 per cent respectively.

In FY24, two-wheelers growth goes well with the growth in economy. Hero Motors grows by 35 percent, TVS by 25 percent, Bajaj 17 percent while Eicher grew by 12 percent.

The segment leader Hero motors registered a 9 per cent growth in April sales at 5,33,585 vehicles from 4,90,415 in March. TVS motors registered sales of 3,83,615 with 8 per cent growth in April. Eicher motors, the parent company of Royal Enfield, registered a growth of 8 per cent with sale numbers reaching at 81,870 in April from 75,551. Bajaj motors sale in April reached at 3,88,256 with a positive growth of 6 per cent.

In the commercial vehicles (CV) segment, sales declined across major companies in April as compared with March. But Tata Motors and Ashok Leyland have shown an impressive growth of 31 per cent and 10 per cent in FY24, Eicher however shown a negative growth of 18 per cent.

In April, Eicher Motors recorded a significant 52 per cent drop in sales to 5,377 CVs as compared to 11,242 in March. Ashok Leyland also saw a 38 per cent decline in April sales at 14,271 from 22,866 in March.

Tata Motors' too witnessed a 30 per cent decline in CVs sales to 29,538 from 42,262 in March. In the farming and equipment sector, the sales of tractors have showed mixed trends. Mahindra with 37,039 sales registered a 42 per cent increase month-on-month in tractor sales while the Escort registered a decline of 12 per cent to 7515 in April from 8587 in March.

Tractor sales of Mahindra grew by 2 per cent in FY24, while Escorts showed a decline of 1 per cent in sales.

Beginning of the new fiscal year saw some decline in passenger vehicles and commercial vehicles segment, but positive growth in two-wheelers and tractor sales shows the growth momentum of the Indian economy.