Today, the BSE Auto witnessed a decline of 1.19%. As the festive season approaches, the auto sector anticipates a significant uptick in demand, as consumers often prefer to take delivery of their vehicles during special occasions.
India’s automotive industry is on the cusp of significant growth, driven by several key factors that promise a robust future. One of the primary drivers of this growth is the rising income levels among the middle class, coupled with a substantial youth population, which is expected to fuel strong demand in the market.
Additionally, the global electric vehicle (EV) market has been gaining traction, with an estimated worth of approximately USD 250 billion in 2021.
The Indian government’s proactive approach doesn’t stop there. They also anticipate the automobile sector attracting substantial investments, both domestic and foreign, ranging from USD 8-10 billion by the year 2023. This influx of capital is expected to bolster the industry’s infrastructure, innovation, and overall competitiveness.
The month of October kicked off with noteworthy updates in the auto sector.
| Company Name | Category | Sep’23 | Sep’22 | % Change | Q2 FY24 | Q2 FY23 | % Change | Category | Sep’23 | Sep’22 | % Change |
| Tata Motors Ltd | Total Domestic Sales | 82,023 | 80,633 | 2% | 2,37,128 | 2,36,090 | 0% | Total Export Sales | 22,511 | 21,403 | 5.17% |
| Ashok Leyland Ltd | Total Domestic Sales | 18193 | 16499 | 10% | 86052 | 79639 | 8% | Total Export Sales | 1009 | 1050 | -3% |
| Mahindra & Mahindra Ltd | Total Domestic Sales | 49188 | 40,282 | 22% | 254140 | 194303 | 30% | Total Export Sales | 2419 | 2538 | 5% |
| Bajaj Auto Ltd | Total Domestic Sales | 2,53,193 | 2,54,664 | -1% | 12,79,112 | 12,79,112 | 22% | Total Export Sales | 1,39,365 | 1,40,083 | -1% |
| Maruti Suzuki India Ltd | Total Domestic Sales | 1,58,832 | 1,54,903 | 2% | 9,17,543 | 8,52,694 | 7% | Total Export Sales | 22,511 | 21,403 | 5% |
| TVS Motor Company Ltd | Total Domestic Sales | 3,86,955 | 3,61,729 | 8% | 1031000 | 977000 | 6% | Total Export Sales | 1,00,294 | 92,975 | 8% |
| Hero MotoCorp Ltd | Total Domestic Sales | 5,36,499 | 5,19,980 | 3% | 27,69,100 | 28,18,361 | -1% | Total Export Sales | 16,710 | 12,290 | 35% |
In a month-on-month comparison, Mahindra & Mahindra Ltd took the lead with a remarkable 22% growth, closely followed by Ashok Leyland Ltd, which recorded a solid 10% increase in sales. However, on the flip side, Maruti Suzuki India Ltd and Bajaj Auto Ltd faced some challenges, with sales growth of 2% and a slight decline of -1%, respectively.
Looking at international markets and export figures, most companies made subtle progress. Hero MotoCorp Ltd stood out with an impressive 35% increase in exports. Following closely with modest growth rates of around 5%, we find Maruti Suzuki India Ltd, Mahindra & Mahindra Ltd, and Tata Motors Ltd. In contrast, Ashok Leyland Ltd and Bajaj Auto Ltd experienced a decline in exports, with -3% and -1%, respectively.
In an overarching view, the horizon appears bright for the auto sector, illuminated by the festive seasons of Diwali, Christmas, and the approaching new year. Moreover, the Indian automotive industry’s auspicious prospects are rooted in the surge of incomes, a youthful population, amplified production, and a shift towards electric mobility.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
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