Despite the monthly dip, year-on-year figures paint a brighter picture, up 592% from November 2024’s 10,163 units, buoyed by lower interest rates and moderating inflation that are gradually thawing consumer demand.
According to data compiled by Topline Securities, the strong annual growth was supported by easing inflation, lower interest rates, and the arrival of new entrants that strengthened overall market competitiveness.
While the MoM decline in auto volumes was primarily driven by customers delaying vehicle deliveries to next year in order to benefit from new-year registration, AHL viewed. Moreover, an 11% contraction in PSMC’s sales also added to the overall decline, driven by lower volumes in models that have been phased out, including Ravi, Bolan, Every, and Wagon R.
Honda Atlas Cars (HCAR) led the market’s year-on-year performance with an impressive 135% jump to 2,609 units, driven by sharp recoveries in City and Civic sales. While Civic and City models grew 134% year-on-year, their monthly numbers remained flat. BR-V and HR-V models posted 145% yearly growth, though sales dropped 31% month-on-month to 250 units. Indus Motor Company (INDU), the assembler of Toyota vehicles, reported a 75% rise to 3,833 units, with Corolla, Yaris, and Cross models collectively rising 78% year-on-year. However, monthly sales fell 14% to 3,236 units amid lower deliveries of Fortuner and IMV models, which declined 60% year-on-year and 24% month-on-month.
Suzuki Motor Company (PSMC), which dominates the small-car segment, recorded 23% growth to 6,615 units. Alto sales jumped 17% month-on-month to 4,069 units, but the cumulative impact of earlier declines left PSMC’s overall volumes down 11% month-on-month. Hyundai Nishat posted 38% yearly growth, with Elantra and Tucson sales up 8% and 75% year-on-year respectively. Sazgar Engineering Works (SAZEW), known for the popular Haval brand, saw sales of 1,109 units, up 90% year-on-year but down 20% month-on-month.
Motorcycle and three-wheeler sales also strengthened, rising 38% year-on-year to 165,753 units. Atlas Honda (ATLH) alone sold 140,382 units, maintaining leadership in the two-wheeler market. Three-wheeler sales, including those produced by PSMC and others, also showed resilience despite inflationary pressures that have squeezed purchasing power across low-income households.
The tractor segment remained positive, growing 7% year-on-year in November to 3,663 units. Millat Tractors reported 63% growth to 2,303 units, supported by the government’s tractor financing schemes and improving farm economics. AGTL, however, saw a 32% yearly decline to 1,360 units.
In the heavy transport category, truck and bus sales rose 62% year-on-year to 530 units, although monthly volumes dropped 31%. Increased construction activity, improved business sentiment, and a partial revival in logistics demand contributed to the annual improvement.