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The Indian automotive landscape has witnessed a significant shift in September 2024, with Mahindra & Mahindra Ltd (M&M) emerging as the country's third-largest carmaker by volume, surpassing Tata Motors. This achievement is attributed to the robust performance of M&M's sport-utility vehicles (SUVs), which saw a remarkable 24% year-on-year growth in sales, reaching 51,062 units in September. In contrast, Tata Motors experienced a decline of 8% in domestic passenger vehicle wholesales during the same period, registering 41,063 units. This marks the first time Mahindra's monthly wholesales have crossed the 50,000 mark.
The success of M&M's SUV segment, particularly the launch of the compact SUV XUV 3XO earlier this year, has propelled the company's overall growth amidst a general slowdown in car sales during the second quarter. M&M's passenger vehicle wholesales exhibited a 21% year-on-year increase in the first half of 2024-25, reaching 2,60,210 units. The automaker is aiming for a mid-to-high-teens growth rate in the current fiscal year. Conversely, Tata Motors witnessed a 3.6% dip in domestic car wholesales during the first half of the fiscal year, reaching 268,034 units compared to 278,070 units in the same period of FY24.
The slowdown in the Indian car industry, characterized by a more than 5% decline in retail sales during the second quarter of FY25, can be attributed to sluggish consumer demand and seasonal factors. Tata Motors' wholesales were further impacted by weak demand for electric vehicles (EVs) due to the lapse of registration and road tax waivers in key states and the discontinuation of subsidies for fleet operators. Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, acknowledged the continued impact on fleet EV sales due to the lapse of the FAME II scheme and the exclusion of the fleet segment in the PM-eDRIVE scheme.
Tata Motors' wholesales in Q2 FY25 declined by 6% to 130,753 units compared to the previous year's quarter, as the company adjusted its wholesales to align with lower-than-expected retail sales, aiming to maintain control over channel inventory. However, Chandra expressed optimism regarding the pickup in registrations towards the end of September, indicating a positive outlook for the upcoming festive season. Meanwhile, Hyundai Motor India Ltd, gearing up for a major initial public offering (IPO), recorded domestic sales of 51,101 units in September. India's leading carmaker, Maruti Suzuki India Ltd, experienced a 4% decline in September sales, reaching 144,962 units compared to 150,812 units in the same period last year.
Source: Mahindra surpasses Tata to become India’s 3rd biggest carmaker