India Auto Sales Mixed in August; Two-Wheeler Demand Up, Passenger Vehicle Stays Weak

India’s auto sales for August painted a mixed picture, with two-wheeler makers reporting strong gains on scooters, motorcycles, and exports, while leading passenger vehicle manufacturers continued to face weakness in SUVs and small cars.

Hero MotoCorp sold 553,727 vehicles in August, up over 8% from a year ago, led by a 53% surge in scooter sales to 52,204 units and a 72% jump in exports. Motorcycle sales rose 5% to 501,523 units, while domestic despatches grew 5.5% to 519,139 units. However, in April–August, overall sales slipped nearly 2% to 2.37 million units, as motorcycle volumes declined 4%.

TVS Motor posted record-high sales at 509,536 units, up 30% on year, backed by robust demand across motorcycles, scooters, and three-wheelers. Scooter volumes jumped 36% to 222,296 units, while motorcycle sales rose 30% to 221,870 units. Overseas shipments climbed 35% to 135,367 units. Electric vehicle sales were flat at 25,138 units due to supply shortages, while three-wheeler volumes surged 47% to 18,748 units.

Bajaj Auto reported its strongest growth in three months, with sales up 5% to 417,616 units, driven by a 25% rise in exports to 157,778 units. Domestic two-wheeler despatches fell nearly 12% to 184,109 units, but overseas demand offset the weakness. Commercial vehicle sales rose 21% to 75,729 units. For April–August, sales were up 2% at 1.89 million units, as exports grew 21% and domestic volumes slipped 9%.

Royal Enfield continued its momentum, with despatches soaring 55% to 114,002 units, the fastest growth since October 2022. Demand for entry-level models up to 350cc surged 61% to 98,631 units, while premium motorcycles above 350cc grew 23%. Exports rose 39% to 11,126 units. In April–August, despatches were up 27% at 467,575 units.

Eicher Motors’ VE Commercial Vehicles JV sold 7,167 units, up 9.5%, supported by higher truck sales and exports that more than doubled to 593 units. Domestic volumes rose 5% to 6,331 units, driven by small and medium-duty trucks. However, bus sales weakened. In April–August, sales rose 9.2% to 35,892 units.

Tata Motors extended its losing streak in the domestic market for an eighth month, with overall sales at 73,178 units, up 2% on year. Domestic volumes slipped 2% to 68,482 units, dragged by a 7% fall in passenger vehicles to 41,001 units. Electric vehicle sales, however, rose 44% to 8,540 units, while exports of passenger cars surged to 2,314 units from 344 a year ago. Commercial vehicle sales rose 10% to 29,863 units, supported by growth in trucks and small CVs.

Maruti Suzuki also reported a weak month, with domestic passenger vehicle sales down over 8% on year to 131,278 units. Utility vehicle volumes fell nearly 14% to 54,043 units, while mini car sales slumped 36% to 6,853 units. Exports, however, surged 40% to 36,538 units, the fastest pace in three months. Overall domestic sales, including light CVs, fell 7% to 144,145 units. In April–August, total despatches rose just 1% to 889,070 units, supported by a 37% jump in exports.

Mahindra & Mahindra saw SUV sales decline for the first time in over two years, down 9% to 39,399 units, as it cut wholesale billing ahead of a potential GST rate cut. Commercial vehicle sales were steady at 22,427 units, while three-wheelers rose 13% to 10,527 units. Tractor sales provided strong support, surging 28% on year to 28,117 units. Overall, M&M sold 75,901 vehicles, broadly flat from last year. In April–August, passenger vehicle sales rose 15%, commercial vehicles 6%, tractors 12%, and three-wheelers 33%.