The Indian automotive industry has seen remarkable growth, driven by increased demand, innovation, and favorable government policies. Leading companies like Tata Motors, Maruti Suzuki, and Mahindra & Mahindra have expanded their product portfolios to meet evolving consumer needs. With a focus on electric vehicles (EVs) and advanced features, Indian auto companies are well-positioned to capitalize on both domestic and global markets.
Future Potential and Rising Demand
The future of the Indian auto industry looks bright, fueled by rising disposable incomes and a growing middle class. Finance companies are playing a pivotal role by providing easier access to auto loans, thus fueling consumer demand. Additionally, there has been a surge in SUV sales, driven by changing preferences for space, comfort, and luxury in the Indian market. This increasing demand for SUVs, combined with innovation in electric mobility, presents significant growth opportunities for the industry.
Share Price
The shares of Mahindra & Mahindra Limited are currently trading at Rs. 3,052 up by 1.49% from its previous close of Rs. 3,007.1 as of January 01, 2025. The Stock also touched an intraday high of Rs. 3,066.
Recent Update
Passenger Vehicle Sales Growth
In December 2024, domestic sales of passenger vehicles saw a significant growth of 18%, reaching 41,424 units compared to 35,171 units in December 2023. The year-to-date (YTD) figures for FY25 show a 21% increase in overall sales, with 402,360 units sold, up from 333,764 units in FY24.
The strong performance was driven by a surge in utility vehicle sales, which rose by 18%, while cars and vans experienced a decline, reflecting a shift in consumer preference towards more spacious and versatile vehicles.
Commercial Vehicles and 3 Wheelers Sales
Light Commercial Vehicles (LCVs) Performance
In December 2024, the domestic sales of Light Commercial Vehicles (LCVs) saw mixed results. LCVs under 2 tons recorded a 15% decline, with 2,409 units sold, compared to 2,849 units in December 2023. The year-to-date (YTD) figures for FY25 show a 10% decrease, with 28,634 units sold compared to 31,896 units in FY24.
On the other hand, LCVs in the 2 to 3.5-ton category experienced an increase of 16%, with 16,139 units sold in December 2024, compared to 13,958 units in the same period last year. The YTD growth for this category stands at 4%, totaling 159,738 units, up from 154,319 units in FY24.
Medium and Heavy Commercial Vehicles (MHCVs) and 3 Wheelers Sales(Including Electric 3Ws)
Sales of Medium and Heavy Commercial Vehicles (MHCVs), including LCVs above 3.5 tons, declined by 12% in December 2024, with 954 units sold compared to 1,081 units in December 2023. The YTD figures reflect a 4% decline in this category, totaling 9,021 units, compared to 9,359 units in FY24.
In contrast, 3-wheelers, including electric 3Ws, saw an 8% growth in December, with 5,750 units sold. The YTD performance for 3-wheelers stands at 64,233 units, up by 6% from 60,503 units in FY24, indicating continued growth in the segment, driven by the shift towards electric mobility.
Exports Performance in December 2024
India’s auto exports showed impressive growth in December 2024, with total exports reaching 3,092 units, a significant 70% increase compared to 1,819 units in December 2023. The year-to-date (YTD) export figures also reflect strong performance, with a 22% growth, totaling 24,101 units in FY25, up from 19,805 units in FY24.
This surge highlights the increasing demand for Indian-made vehicles in global markets, driven by competitive pricing, improved product quality, and expanding market reach, positioning India as a key player in the global automotive industry.
Management Commentary
According to Veejay Nakra, President, Automotive Division, M&M Ltd., “The year ended on a high, as we became the only Indian auto company to attain the Dow Jones Sustainability Index (DJSI) world leader status within the Auto Sector. The DJSI ranking is one of the most respected global benchmarks for ESG performance, covering over 13,000 companies across various industries and we are ranked 1st among all global auto OEMs.”
Written By: Dipangshu Kundu
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