India’s Car Sales Surge 5.18% in 2024 Amid Economic Challenges

India’s automotive sector has demonstrated robust growth in 2024, with overall retail vehicle sales increasing by 9.1 per cent year-on-year (YoY), according to the latest data from the Federation of Automobile Dealers Associations (FADA). Despite challenges such as unpredictable weather patterns, elections, and uneven monsoons, the market showed resilience across multiple segments. Notably, the three-wheeler (3W), passenger vehicle (PV), and tractor categories achieved record-breaking sales.

Segment-Wise Growth in Retail Sales for 2024

FADA’s retail sales data reveals significant growth across various vehicle categories:

– Two-Wheelers (2W): A notable 10.7 per cent YoY increase.

– Three-Wheelers (3W): Surging by 10.4 per cent YoY, reaching an all-time high.

– Passenger Vehicles (PV): A steady 5.1 per cent YoY growth, marking a new peak.

– Tractors: A 2.5 per cent YoY rise, also an all-time high.

– Commercial Vehicles (CV): The segment showed minimal growth, with a slight 0.07 per cent increase.

The retail sales data for passenger cars in India for the year 2024 showed a growth of 5.18 per cent, with total sales reaching 4,073,843 units, up from 3,873,381 units in 2023. This growth came despite economic uncertainties and market volatility. Maruti Suzuki maintained its position as the market leader, selling 1,639,978 units, reflecting a 3.66 per cent increase compared to 2023.

Hyundai secured the second spot, with 559,984 units sold, marking a modest 1.56 per cent growth. Tata Motors, with a 2.32 per cent increase, sold 538,221 units, securing third place in the market.

Mahindra stood out with an impressive 21.24 per cent YoY growth, reaching 490,169 units, driven largely by strong demand for its SUVs. Toyota also saw substantial growth, with sales jumping 33.84% to 258,684 units. Kia posted a 4.51 per cent growth, selling 237,479 units.

However, several major brands faced challenges. The Skoda Volkswagen Group reported a 13.88 per cent drop in sales, with only 79,427 units sold, down from 92,228 units in 2023. Honda also experienced a decline, with sales falling by 10.53 per cent to 68,923 units. Renault’s sales plummeted by 23.26 per cent, reaching just 40,637 units, while Nissan’s sales dipped by 5.99 per cent, totaling 26,169 units.

Other smaller players in the market also faced downturns, with Force Motors posting a 19.93 per cent growth to 8,612 units and MG Motor growing by 5.39 per cent to 52,532 units. BYD led the growth charge with a remarkable 40.06 per cent increase, selling 2,818 units. Conversely, Citroen saw a significant 25.93 per cent drop, with only 6,643 units sold, while Jeep’s sales declined sharply by 37.54 per cent, selling just 4,580 units.

The luxury car segment experienced varied performances in 2024. Mercedes-Benz led the luxury market with 17,334 units sold, marking an 11.47 per cent increase. BMW followed closely with 14,278 units, reflecting a 14.23 per cent growth. Jaguar Land Rover (JLR) saw a strong recovery, with a 33.56 per centincrease in sales, reaching 4,636 units. However, Volvo faced a decline, with a 13.55 per cent drop, selling 1,824 units.

The Indian automobile market in 2024 showed significant growth, with major players such as Mahindra, Toyota, and BYD posting impressive results. However, the sector also faced challenges due to heightened competition, shifting consumer preferences, and economic uncertainties. Looking ahead to 2025, the market is expected to continue its upward trajectory. The tractor and three-wheeler segments, in particular, are likely to remain strong performers as rural demand continues to rise.