India's passenger vehicle market experienced a robust nearly 25 per cent growth in June 2024, with major players like Maruti Suzuki, Tata Motors PV, and Mahindra & Mahindra leading the charge, despite looming concerns over geopolitical events and monsoon patterns.
Key Points
- Indian passenger vehicle sales are estimated to have grown by nearly 25 per cent in June 2024, reaching approximately 4 lakh units.
- Maruti Suzuki, Tata Motors Passenger Vehicles, and Mahindra & Mahindra were key drivers of this growth.
- Economic tailwinds such as GST 2.0, income tax relief, and RBI repo rate cuts are contributing to sustained demand.
- Concerns remain regarding the potential impact of West Asia geopolitical tensions on vehicle and fuel prices, and deficient monsoon on future demand.
- Maruti Suzuki recorded its highest-ever quarterly CNG sales, indicating a shift towards more fuel-efficient options amidst rising petrol prices.
Passenger vehicle sales in the country are estimated to have grown nearly 25 per cent in June to about 4 lakh units, led by the likes of Maruti Suzuki, Tata Motors PV and Mahindra & Mahindra, amid concerns over the impact of the West Asia war on vehicle and fuel prices, and deficient monsoon on demand going forward.
The tailwinds of GST 2.0, income tax relief on income of up to Rs 12 lakh and repo rate cuts by the RBI continue to drive demand in the domestic market, Maruti Suzuki India senior executive officer, Marketing & Sales, Partho Banerjee, told reporters in an interaction.
The total industry sales estimate for June this year is around "4 lakh plus or minus 2,000 or 3,000 (units)", and it was around 3.22 lakh units in June 2025, he added.
Driving Factors and Headwinds
"The three tailwinds of GST 2.0, the income tax benefit on up to Rs 12 lakh income, and repo rate reduction are still very much there," Banerjee said when asked about the growth drivers of the industry.
He, however, added, "Obviously, some headwinds are coming in the form of the war of Iran (and implications that it will have) on the vehicle prices and also now the (deficient) monsoon, which is there. We need to wait and watch."
Asked about the impact of the fuel price hike on demand, Banerjee said, "Obviously, it has an impact because it is ultimately the total cost of ownership which gets impacted, and (the impact on) small cars is more."
However, he said that with the running cost of CNG much less than petrol, the company increased supplies of the CNG variants of its models in the market when petrol prices were hiked.
As a result, in the first quarter, the company clocked its highest ever quarterly CNG sales at 2,18,213 units in Q1 of this fiscal, he noted.
Company-Specific Performance
Maruti Suzuki India reported total domestic passenger vehicle sales of 1,47,187 units last month, the highest for a June month as compared to 1,18,906 units in June 2025, a growth of 23.8 per cent.
Tata Motors Passenger Vehicles Ltd (TMPV) reported a 67 per cent jump in its domestic sales at 62,076 units last month as compared to 37,083 units in the year-ago period.
Homegrown player Mahindra & Mahindra reported a 28 per cent rise in its domestic passenger vehicles sales at 60,393 units last month as compared to 47,306 units in June 2025.
On the other hand, Hyundai Motor India Ltd (HMIL) reported domestic sales of 39,635 units, with its managing director & CEO Tarun Garg stating that the company faced a production loss of 13,900 units owing to a fire incident at one of the suppliers' manufacturing facilities, which led to a temporary disruption in production.
Toyota Kirloskar Motor (TKM) reported an 8 per cent rise in its domestic sales at 28,441 units in June as compared to 26,453 units sold in the same month last year.
"We are encouraged with the positive sales performance in the month of June, driven by continued market momentum and a clear focus on customer-centricity," TKM executive vice president, sales-service-used car business, Sabari Manohar said.
Another automaker Kia India reported its highest-ever June sales since inception, with wholesale volumes of 24,552 units, up 19 per cent from 20,625 units sold in the same month last year.
JSW MG Motor India also reported a 30 per cent year-on-year rise in wholesales at 7,568 units in June, its best-ever monthly sales, with electric vehicles continuing to drive the growth, contributing over 75 per cent of the total sales.
Rising fuel prices, lower EV running costs, and geopolitical uncertainties in West Asia further accelerated customer preference for electric mobility, the company said.
Nissan Motor India Pvt Ltd (NMIPL) also reported domestic wholesales of 3,006 units, registering a 129 per cent year-on-year growth.
