Domestic PV wholesales increase by 11% in December to 320,000 units

The domestic passenger vehicle (PV) wholesales in the Indian automobile industry rose by 11 per cent year-on-year (Y-o-Y) in December to 320,000 units, driven by strong demand for SUVs (sports utility vehicles), a robust recovery in the urban market, year-end discounts, and solid sales of CNG-powered cars.

 

In the calendar year 2024 (CY24), domestic PV wholesales of the industry stood at 4.3 million units, recording a Y-o-Y growth of about 4.7 per cent. "At the beginning of the year, SIAM (Society of Indian Automobile Manufacturers) had forecast that the PV volume growth in 2025 would be 4-5 per cent due to high base effect. The final numbers are in line with the forecast,” Partho Banerjee, senior executive officer, marketing & sales, Maruti Suzuki India Limited (MSIL), told Business Standard.

   

"There were elections in the first half of this year. During the summer season, people stayed indoors. The situation turned around for the PV makers from the festival season onwards (September-October)," he said.

 

The demand for SUVs continues to increase for the automobile industry. "The SUV's share in the annual PV volume sales of the industry stood at about 55 per cent in 2024. Last year, it was less than 50 per cent," he added.

 

Banerjee noted that in December 2023, domestic PV volume sales for the industry stood at 288,169 units. "In December 2024, we estimated the industry's PV volume sales to be around 320,000 units, give or take 5,000 units. This indicates a growth of approximately 11-11.5 per cent," he said. 

 

In December 2024, MSIL's domestic PV wholesales stood at 130,117 units, reflecting a robust Y-o-Y growth of 24.2 per cent. Banerjee attributed this strong performance to the company's ability to reduce dealer inventory significantly. In August, dealers held approximately 38 days’ worth of stock. "During the annual general meeting (AGM) in August, we stated our goal to reduce network stock (stock with dealers) to 10 days. As of now, they have nine days of stock," Banerjee noted.

 

Election and heat impacted the urban sales but in the last quarter of 2024, the company recorded strong sales in both urban and rural areas. However, MSIL's overall urban volume sales in 2024 remained flat while the rural volume sales increased by about 10.1 per cent Y-o-Y, he stated.

 

Banerjee said MSIL's CNG-run vehicle sales have been growing month-on-month (M-o-M). In 2024, the company sold about 576,000 units of CNG cars, which is a Y-o-Y growth of 33 per cent.

 

The domestic PV wholesales of Tata Motors increased by 1.4 per cent Y-o-Y to 44,289 units in December 2024.

 

Shailesh Chandra, managing director of PV and EV (electric vehicle) divisions of Tata Motors, said: “The PV industry posted moderate growth in CY24 and is expected to touch a sales volume of 4.3 million units, with strong growth in the SUV segment and sustained traction for emission-friendly powertrains."

 

The domestic PV wholesales of Hyundai decreased by 1.3 per cent Y-o-Y to 42,208 units in December 2024. Toyota's domestic PV wholesales increased by 16.4 per cent Y-o-Y in the same month. Toyota's overall volume sales in 2024 jumped by 40 per cent Y-o-Y to 326,329 units.

 

Sabari Manohar, vice president, sales-service-used car business, Toyota Kirloskar Motor, said: "We are immensely proud to close 2024 with a record-breaking performance, achieving an impressive 40 per cent Y-o-Y growth. The SUV and MPV (multi-purpose vehicle) segments being key contributors grew at 20 per cent over the same period last year."