How April Was a Turnaround Month For Top Selling PVs In India Passenger vehicles sales were supported by enhanced model availability and favorable market sentiments, particularly around festival season, said FADA
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
In April, the passenger vehicle (PV) category experienced double-digit year-on-year (YoY) growth standing at 16 per cent YoY. This was supported by enhanced model availability and favorable market sentiments, particularly around festive events such as Navratri and Gudi Padwa, said the latest Federation of Automobile Dealers Association (FADA) in its April data. The month has also seen some major changes in the top selling models of PVs –The best selling car in India is no more a Maruti–Tata Motors Punch sold 19,158 units compared to Suzuki WagonR's 17,850.
The Punch has emerged as the highest-selling model for two months in succession. It was on top of the sales charts in March 2024 with 17,547 units sold. Safety ratings could be one of the reasons for the shift in consumer preference. Tata Punch impresses in global safety tests, earning five stars for adult occupant protection and four stars for child safety in the Global NCAP rating. Whereas, WagonR safety ratings stood at one star in the adult occupant protection category and zero in the child occupant protection category. In the past few years, Tiago, Altroz, Punch and Nexon have fueled Tata Motors' growth. The company registered domestic PV sales (including EV) of 47,883 units, a two per cent YoY increase in April, whereas, Maruti Suzuki sold 137,952 units of domestic PVs in the same period.
Although the overall PV segment performed well, it faced certain challenges. Despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustained growth. Additionally, the lack of new models in some portfolios impacted market traction. "In the PV segment, new model launches and favorable monsoon forecasts are set to stimulate customer interest. The appeal of new electric models and sustained demand for conventional vehicles are likely to provide further momentum," said FADA president Manish Raj Singhania.
Heavy discounting in the PV segment could impact profitability. The auto industry remains cautiously optimistic about its near-term outlook. Market opportunities exist with rising customer interest in new models. However, election-related uncertainty and financial constraints remain key challenges that the industry will need to monitor closely to navigate this evolving landscape effectively.
