Despite pressure, Maruti Suzuki realised its highest-ever numbers in a year as it gained due to strong inroads into rural market. Car sales growth slowed down to around 5% in 2024, slowest pace of expansion in four years, highlighting the pressures companies are facing in urban markets.
According to early estimates, the industry closed 2024 with sales of around 43 lakh units, against 41.1 lakh units in 2023, largely fuelled by SUVs that contributed 54% of the sales.
While many companies say “5% growth is still a positive for the industry, considering a high base”, some expect that pressure on companies is likely to continue in the new year. “The industry now hopes for incentives in the budget, and feels that a cut in income tax rates — if it happens — will fuel consumption,” a company executive said.
Demand had been lacklustre through a significant part of 2024, with companies resorting to heavy price cuts and aggressive discounts to push sales, especially towards the year-end. With car prices going up significantly over the past few years due to statutory safety and emission requirements, there has been a decline in affordability of vehicles, which has also impacted demand.
Despite pressure, Maruti Suzuki realised its highest-ever numbers in a year as it gained due to strong inroads into rural market. Partho Banerjee, senior executive officer (marketing & sales), told TOI that the company sold 17.9 lakh units in 2024, against 17.4 lakh units in previous year.
“We have managed to realise growth across segments, and not just in SUVs where we now have a share of 27%,” Banerjee said.
Hyundai India had a near-flat year with 1% growth as it sold a shade over six lakh units. “Hyundai has managed to sustain sales momentum in 2024, despite strong headwinds faced by the industry at large,” Tarun Garg, director and COO at the company said.
Tata Motors sold over 5.6 lakh units, with MD (PV and electric mobility) Shailesh Chandra crediting the demand to SUV sales. “The PV industry posted moderate growth in 2024… with strong growth in SUV segment and sustained traction for emission-friendly powertrains. For Tata Motors, 2024 was the fourth consecutive year of highest-ever annual sales. We registered strong growth in SUV portfolio… and CNG volumes grew a substantial 77%.”
