India's auto sales surge for 5th month on GST boost
What's the story
India's automobile industry has witnessed a major spike in sales for the month of February. The increase marks the fifth consecutive month of growth, with GST-led affordability being a contributing factor. Tata Motors and Mahindra & Mahindra led this surge with impressive double-digit growth in their overall dispatches. The positive trend is backed by sustained demand, rural recovery, and improved supply conditions.
Sales figures
Overall dispatches and market leader's performance
The automotive industry is estimated to have dispatched between 4,20,000 and 4,25,000 units in February. This is a significant increase from the 3,81,665 units dispatched during the same period last year. Market leader Maruti Suzuki reported domestic passenger vehicle sales of 1,61,000 units last month. This was a slight increase from the previous year's figure of 1,60,791 units for February.
Market leaders
Impressive growth for Tata Motors and Mahindra & Mahindra
Tata Motors recorded a whopping 34% year-on-year (YoY) jump in domestic sales to 62,329 units. The growth was driven by strong demand for its SUVs and electric vehicles. Meanwhile, Mahindra & Mahindra also witnessed a 19% rise in domestic sales to 60,018 units on the back of robust bookings for its utility vehicles.
International brands
Hyundai, Toyota, and Kia report significant YoY growth
Hyundai Motor India reported domestic sales of 52,407 units in February, a 9.8% YoY increase. This was the company's highest-ever February sales in India. Toyota Kirloskar Motor also saw a 16% jump in domestic dispatches to 30,737 units on the back of sustained demand for hybrid models. Kia India registered domestic sales of 27,610 units, 10% growth over last year's figures, driven by traction in compact and mid-SUV segments.
Two-wheeler market
Two-wheeler segment also sees spike in sales
The two-wheeler segment also saw a major jump in sales. Hero MotoCorp, the market leader, dispatched 5,58,216 units last month, an increase of 44% from 3,57,296 units during the same month last year. TVS and Royal Enfield also saw growth with TVS sales rising 13% to 3,65,471 units while Royal Enfield's sales climbed up by the same percentage to 91,248 units on a YoY basis.