Each month, automobile makers in India release wholesale numbers, or vehicle sales, to dealers. The sales numbers are seen as a key indicator of private consumption in India.
The auto sector contributes around 7% to the country’s economy. According to monthly data from automakers released on Monday, Mahindra’s total car sales grew 11.2%, missing brokerage Nomura’s 16% estimate and Jefferies’ 18% estimate. This is Mahindra’s slowest monthly sales growth since March.
Intense heat in northern India has reduced footfall at dealerships, according to Nomura, which added that a normal monsoon could likely lead to a revival in rural sales for passenger vehicles. Toyota’s and Kia’s respective growths of 40.1% and 9.8% are their largest since February.
Nomura and Jefferies do not provide monthly sales estimates for Toyota and Kia. A surge in domestic sales of more-expensive SUVs last year has extended into 2024 and benefitted companies including Mahindra and Toyota, whose portfolios consist almost entirely of utility vehicles.
Maruti Suzuki, which dominates the cheaper small-car segment, will report its June sales later in the day. Meanwhile, domestic demand recovery in rural areas outweighed weak exports, helping motorcycle-maker Bajaj Auto record a 5.1% growth in two-wheeler sales. While this beat Nomura’s estimate of a 1% decline, it missed Jefferies’ estimate of 10% growth. Rural two-wheeler sales have recovered from weakness through fiscal 2024, which had hurt entry-level sales for motorbikes such as the Bajaj Platina. The rural sector accounts for more than half of India’s total two-wheeler sales, according to a 2023 report by motorcycle maker Hero Motorcorp. Company Total June Y/Y change name sales in June (units) (%) Mahindra & 69,397 11.2 Mahindra Toyota 27,474 40.1 Kirloskar Motor Kia Motor 21,300 9.8 Bajaj Auto 358,477 5.1 Mahindra & 47,319 6.4 Mahindra Farm Equipment.