India’s Automobile Sales Hit Record High in 2024 with 11.6% Growth

KKN News Desk | India’s automobile industry witnessed an impressive 11.6% growth in sales in 2024, reaching a record-breaking 2.5 crore units compared to 2.3 crore units in 2023, according to the Society of Indian Automobile Manufacturers (SIAM). This growth further solidifies India’s position as the world’s third-largest car market.

“Stable macroeconomic conditions and positive consumer sentiment fueled growth across all vehicle segments,” said SIAM President Shailesh Chandra.

The two-wheeler segment emerged as the main growth driver, expanding by 14.5% to reach 1.95 crore units in 2024. Sales of passenger vehicles (PVs) rose by 4.2% to 43 lakh units, while the three-wheeler segment saw a 6.8% increase, with sales totalling 7.3 lakh units.

In December 2024, passenger vehicle dispatches to dealers grew by 10%, reaching 3,14,934 units compared to 2,86,390 units in December 2023. However, two-wheeler dispatches declined 9% year-on-year, with 11,05,565 units dispatched compared to 12,12,238 in the previous December. Meanwhile, three-wheeler dispatches climbed to 52,733 units, up from 50,947 units in December 2023.

Reflecting on quarterly performance, Chandra highlighted that passenger vehicles, commercial vehicles, and three-wheelers achieved their highest-ever sales during the October-December quarter of 2024. Passenger vehicle sales for Q3 of FY 2024-25 grew by 4.5%, reaching 10.6 lakh units compared to the previous year’s period.

SIAM Director General Rajesh Menon attributed the industry’s success to favorable government policies. “The stable policy environment in 2024, continuing from previous years, created a solid foundation for growth,” he stated.

As the industry enters 2025, stakeholders remain optimistic about sustaining this positive momentum, supported by initiatives like the Bharat Mobility Global Expo. Manufacturers are hopeful about leveraging these opportunities for continued growth in the coming year.