Passenger vehicles and two-wheelers drove Indian automotive sales in May 2024, supported by strong domestic demand and a positive export outlook [1, 2].
This growth indicates a continuing shift in consumer preferences toward SUVs and scooters, which are offsetting a slower performance in the commercial vehicle sector. The trend suggests a resilient retail market despite broader economic pressures.
Domestic demand remained high as the "scooterisation" trend continued to influence buyers across the country [1, 2]. While commercial vehicle sales lagged behind their peers, the appetite for passenger cars and two-wheelers kept the overall industry trajectory positive.
Manufacturers including Bajaj Auto, Hero MotoCorp, and TVS Motor reported solid performance during the period [1, 2]. For TVS, the results were particularly strong. A CNBC TV18 analyst said, "TVS delivered an all-round beat with more than 30% growth" [1].
Export markets also provided a significant boost to the industry. Despite concerns regarding higher commodity prices linked to tensions in West Asia, the outlook for international shipments remains strong [1, 2].
Bajaj Auto is particularly focused on expanding its global footprint. A Bajaj Auto spokesperson said, "Exports are expected to rise to 2.5 lakh units" [1]. This target of 250,000 units reflects the company's strategy to leverage domestic production for global markets [1].
Overall, the automotive sector entered the start of FY27 with this momentum, balancing internal consumption with an aggressive push into foreign territories [1, 2].
“TVS delivered an all-round beat with more than 30% growth.”
The divergence between passenger and commercial vehicle sales suggests that Indian consumer spending is currently favoring personal mobility over industrial logistics. By diversifying into high-growth segments like SUVs and expanding export volumes to 250,000 units, manufacturers are mitigating the risks posed by regional geopolitical instability and fluctuating commodity costs.
