Passenger vehicles (PVs) sales in the country grew 4.2 per cent year on year to 43 lakh units in calendar year Jan-December 2024, the highest ever, riding on the back of SUV sales, Society of Indian Automobile Manufacturers or Siam said on Tuesday.
In 2023, wholesales of PVs by automakers to dealers stood at 4.11 million units. Sales of PVs, include small cars, sedans and sport utility vehicles (SUVs).
Utility vehicle sales were up by almost 17 per cent to 2.7 million units, while passenger cars dipped by 14.4 per cent to 1.37 million units, car manufacturers said. Small cars comprise one-third of total car sales in India, while SUVs and other big cars form the rest.
Manufacturers and dealers were forced to dish out higher discounts in the latter half of 2024. Sales of SUVs and large cars, on the other hand, grew 16.8 per cent last year, albeit slower than the 22 per cent jump they clocked in 2023.
Passenger vehicle wholesales to auto dealers saw a strong 10 per cent growth in December when OEMs offered discounts and focused on liquidating inventory before the start of 2025. “2024 has been reasonably good for the auto industry. Positive consumer sentiments and the country’s macroeconomic stability helped in propelling reasonable growth for the sector across vehicle segments,” Shailesh Chandra, president, Siam, an industry lobby body, said.
He said this year, growth has been primarily driven by the two-wheeler segment, which grew by 14.5 per cent in 2024 compared to the previous year, posting sales of 19.5 million units.
“In addition, passenger vehicles and three-wheelers posted their highest ever sales in a calendar year. Passenger vehicles grew by 4.2 per cent in 2024 compared to last year, with sales of around 4.3 million units. Three-wheelers posted a growth of 6.8 per cent in 2024 compared to the previous year, with sales of 7,30,000 units. However, commercial vehicles posted a slight degrowth of (-) 2.7 per cent in 2024 compared to last year, posting sales of 9,50,000 units, though signs of growth are visible in Q3 of 2024-25,” Chandra noted.
Analysts expect car sales growth to pick up pace in 2025 on the back of new model launches that are expected to boost demand as well as expectations of an interest rate cut. In October–December quarter, PVs, commercial vehicles (CVs), and three-wheelers posted their highest ever sales for Q3.
“PVs, CVs, and three-wheelers posted their highest ever sales for Q3. Two-wheelers also posted their second-highest sales for Q3,” Rajesh Menon, director general, Siam, said. He said PVs grew by 4.5 per cent in Q3 of 2024-25, with sales of 1.06 million units compared to the previous year.
Three-wheelers grew by 0.2 per cent in Q3 of 2024-25, with sales of 189,000 units. Two-wheelers grew by 3 per cent in this quarter compared to last year, posting sales of 4.9 million units, while commercial vehicles grew by 1.2 per cent in Q3 compared to Q3 of last year, with sales of 238,000 units, Menon said.
In the month of December, however, two-wheeler sales fell by 8.8 per cent as motorcycles dipped by 15 per cent, and three-wheelers grew by 3.5 per cent.
