Leading Indian Auto Manufacturers to See Growth Moderate

After two years of strong post-pandemic demand and record sales, the growth of automotive vehicle sales in India is projected to slow down in 2024. A high-volume base, weakness in the demand for small passenger vehicles, and higher borrowing costs are expected to reduce growth in 2024 and beyond. According to Visible Alpha consensus, leading Indian auto manufacturers, including Tata Motors (NSE: TATAMOTORS), Maruti Suzuki (NSE: MARUTI), and Mahindra & Mahindra (NSE: M&M), are expected to see both sales volume and revenue projections ease after a period of high growth driven by pent-up demand fulfillment.

In 2023, Tata Motors saw a +24% year-over-year increase in automotive sales volume (number of units sold), resulting in ₹3.3 trillion ($40.8 billion) in automotive revenue. India’s largest passenger vehicle maker, Maruti Suzuki, experienced a +19% growth in automotive sales volume, generating ₹1 trillion ($12 billion) in revenue from automotive sales. Similarly, Mahindra & Mahindra observed a +51% increase in sales volume, leading to revenue of ₹477 billion ($5.8 billion).

Estimates for 2024 suggest growth will moderate. Tata Motors and Maruti Suzuki are expected to see automotive sales volume growth ease to +7% year over year. Similarly, Mahindra & Mahindra is expected to see volume growth ease to +16%. Revenue projections also point to a decline in growth rates in the forecast period.