New Delhi, Jan 7 (FN Bureau) India’s auto retail industry remained resilient during calendar year 2024 despite multiple headwinds and closed the year on a positive note clocking 9.11% year-on-year (Y-o-Y) growth in vehicle sales. As per the vehicle retail data released by Federation of Automobile Dealers Association (FADA) on Tuesday, the total auto sales comprising cars, commercial vehicles, two-wheelers, tractors and all other segments in 2024 stood at 2,61,07,679 units as compared to 2,39,28,293 units in 2023. The data showed passenger vehicles (PVs) which include cars clocked 5.18% year-on-year growth at 40,73,843 units in 2024. At 1,89,12,959 units, two-wheeler sales were 10.78% higher in 2024 as against 1,70,72,932 units in the previous year.
Overall auto sales in December 2024, however, skid with total retail sales declining 12.49% to 17,56,419 units as against 20,07,042 units in December 2023. During December 2024, all categories except tractors witnessed de-growth, with two-wheelers, three-wheelers, passenger vehicles and commercial vehicles falling by 17.6%, 4.5%, 2%, and 5.2% year-on-year respectively. Tractors, on the other hand, registered a notably contrasting 25.7% year-on-year growth. “The 2W (two-wheeler) segment suffered a substantial drop of -17.6% YoY and -54.2% MoM (month-on-month). Dealers cited low cash flow and poor market sentiment—exacerbated by delayed crop payments, halted government disbursements and typical year-end factors—as the main reasons.
Supply challenges for popular models and the growing push toward EVs further weighed on volumes. Many dealers also mentioned that heightened discounts and limited financing options failed to offset weak demand,” said FADA President C S Vigneshwar. The auto dealers’ body said that passenger vehicle sales declined in December due to high post-festive inventory, aggressive discounting and limited new launches, with many buyers deferring purchases to January. “Looking ahead, auto dealer sentiment for January remains cautiously optimistic, with nearly half (48.09%) of surveyed dealers anticipating growth, 41.22% expecting stable demand and only 10.69% foreseeing a decline,” FADA said on near-term outlook for the industry.