Car sales grew by four per cent in May to 3.50 lakh units

MUMBAI: Passenger vehicle (PV) sales during the month of May were in the slow lane as buyers’ sentiments were impacted by general elections and extreme heat waves.

Growing by a modest 4%, PV dispatches from companies to dealers stood at 3,50,257 units in May 2024 as compared to 3,35,436 units in May 2023.

Maruti Suzuki (MSI) reported that its domestic PV sales rose marginally to 1,44,002 units last month from 1,43,708 units in the year-ago period.

“It has been discussed that growth this year will not be very high. It will be in single digit because of the high base effect. Secondly, there were elections and the scorching temperatures also had an impact on the overall sales in May,” said MSI Senior Executive Officer (Marketing & Sales) Partho Banerjee.

Sales growth of MSIL’s entry-level and compact cars were again in negative territory. To revive the segment, MSIL announced new Dream limited editions for Alto K10, S-Presso and Celerio. All three cars will be similarly priced at Rs 4.99 lakh (ex-showroom).

Hyundai Motor India (HMIL) reported a 1% year-on-year increase in domestic dispatch to 49,151 units last month. “In April also the industry grew by around 1.5%…so April plus May the industry growth should be around 2-2.5% over same period last year,” said HMIL COO Tarun Garg. Kia India‘ May sales grew by 4% to 19,500 while Tata Motors’ PV sales grew by 2% y-o-y to 47,075 units in May.

Meanwhile, SUV majors Mahindra & Mahindra and Toyota (TKM) continue to grow at a much faster pace than the industry. Mahindra reported a robust 31% increase in PV dispatches last month at 43,218 units. Toyota Kirloskar Motor (TKM) reported a 24% increase in total wholesales in May at 25,273 units.

Growing forward, industry experts believe sales tax pick up once election results are out and a stable government is formed.Car sales grew by 4% in May to 3.50 lakh units