Passenger Vehicle Sales Dip 10% in February Amid Slowing Demand

India’s passenger vehicle market witnessed a decline in February, with retail sales dropping 10% YoY to 3,03,398 units. Hyundai Motor India, a long-time No. 2 player, slipped to fourth place, trailing behind Mahindra & Mahindra and Tata Motors. Slowing demand and inventory concerns contributed to the dip, dealers’ body Federation of Automobile Dealers Associations said on Thursday.

Passenger Vehicle Sales Drop in February

The Indian passenger vehicle market witnessed a 10% decline in retail sales in February, with total sales dropping to 3,03,398 units from a year ago. The slowdown was attributed to weak consumer sentiment, lower inquiry volumes, and inventory imbalances.

Hyundai Slips to Fourth Place

Hyundai Motor India, which has long held the second position in India’s passenger vehicle market, slipped to fourth place in February. The automaker recorded retail sales of 38,156 units, marking a steep 20% decline from 47,540 units in February 2024. Hyundai’s market share also dropped from 14.05% to 12.58%.

Mahindra & Tata Overtake Hyundai

Mahindra & Mahindra secured the second spot in the rankings with sales of 39,889 units, gaining market share from 11.74% last year to 13.15%. Tata Motors followed closely with 38,696 units, although its market share dipped slightly from 13.51% to 12.75%.

Maruti Suzuki Remains the Market Leader

Maruti Suzuki India continued to dominate the passenger vehicle segment, selling 1,18,149 units in February. However, its market share remained nearly flat at 38.94%, compared to 39.34% in February 2024.

Industry-Wide Decline in Auto Sales

The overall automobile retail sales, including two-wheelers and commercial vehicles, fell 7% in February, according to the Federation of Automobile Dealers Associations (FADA). Dealers reported concerns over rising inventory levels, weak demand, and economic pressures such as liquidity constraints and inflation.

Conclusion

February proved to be a challenging month for the auto sector, with passenger vehicle sales taking a hit. Hyundai’s decline in rankings highlights shifting market dynamics, with Mahindra and Tata Motors gaining ground. However, upcoming festivals and year-end benefits may provide some recovery in March.

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