India logs 9.1% jump in automobile sales in 2024 with growth in most segments – ET Auto

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Retail automobile sales in India grew 9.1% in 2024 to 2.61 crore units, defying multiple headwinds like extreme weather, elections, and uneven monsoons.

Segment-wise, two-wheeler sales grew 10.7%, three-wheelers 10.4%, passenger vehicles 5.1% and tractor 2.5% segments posted growth, while commercial vehicles remained nearly flat at 0.07%, according to data released by the Federation of Automobile Dealers Association (FADA).

Three-wheelers, passenger vehicles and tractor segments reached new all-time highs; two-wheelers almost breached its 2018 peak and commercial vehicles have yet to surpass its 2018 level.

Challenges for internal combustion engine two-wheelers included finance constraints and rising competition from electric vehicles, the industry body said in a statement Tuesday. Commercial vehicles struggled with election-driven uncertainty and low infra-spend; passenger vehicle growth was led to margin pressures from higher inventory and discounts.

In December, the last month of 2024, overall retail automobile sales however declined by 12.4%, with two-wheelers (-17.6%), three-wheelers (-4.5%), PV (-1.9%) and CV (-5.2%) facing de-growth. Only tractor showed a 25.7% yearly jump in sales in December.

In the near term, FADA asserts that about 48% of automobile dealers expect growth in January, 41.22% see flat sales and 10.69% predict a slowdown.

Two-wheeler demand could benefit from improved MSP and rural liquidity, though financing and electric vehicle transition remain key challenges.

Passenger vehicle should get a boost from new launches, marriage-season demand and promotions–but possible price hikes could temper gains, FADA noted.

In long term, considering the entire year 2025, 66% of dealers expect growth, 26.72% foresee stability and only 6.87% project a downturn.

“Overall, FADA remains optimistic that market recovery, coupled with strategic OEM support and policy-level clarity, will enable the automotive retail industry to end 2025 on a robust note,” the statement added.
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