New Delhi, Sep 3: India’s automobile industry continued to see strong domestic demand in August, helping manufacturers offset some of the pressure caused by disruptions in export markets linked to the ongoing conflict in West Asia.
According to an assessment by Kotak, domestic vehicle sales remained healthy across major segments during the month. Strong consumer demand, new model launches and improving market sentiment supported overall volumes and helped the industry maintain its growth momentum.
Exports, however, remained a weak spot for several manufacturers. Shortages of shipping capacity and logistical disruptions caused by the West Asia situation affected vehicle movement to overseas markets. Automakers with greater exposure to the region faced higher uncertainty around shipments and delivery schedules.
The strength of the Indian market was particularly visible in passenger vehicles. Wholesale passenger vehicle sales reached a record 4.48 lakh units in August, registering a 35.7 per cent year-on-year increase. Major manufacturers, including Maruti Suzuki, Tata Motors, Mahindra & Mahindra and Hyundai Motor India, reported strong domestic volumes.
Hyundai Motor India, for example, recorded domestic sales of 54,396 units in August, an increase of 23.6 per cent from a year earlier. Its total sales rose 8.8 per cent to 65,796 units, despite continued challenges in export markets.
The strong domestic performance has provided some stability to automakers at a time when global trade and logistics remain uncertain. With the festive season approaching, companies are expected to focus on meeting rising local demand while closely monitoring export conditions.
For the industry, the August numbers underline the growing importance of the domestic market. While geopolitical disruptions continue to create hurdles for exports, resilient consumer demand in India is helping automobile manufacturers maintain a positive growth outlook.
