Passenger vehicle dispatches hit record 4.3 million units in 2024

Sales grew 11.4% in December as several OEMs continued with their festive discounts

The passenger vehicle (PV) segment, which comprises cars, utility vehicles (UVs) and vans, posted a 4.2 per cent growth in 2024 calendar year (CY) to 4.3 mn units, the highest ever, riding on the back of SUV (sports utility vehicle) sales. UV sales were up by almost 17 per cent to 2.7 mn units while passenger cars dipped by 14.4 per cent to 1.37 mn units during the CY.

 

The month of December was strong too, when PVs grew by 11.4 per cent as several OEMs (original equipment manufacturers) continued with their festive discounts and kept focusing on liquidating inventory before the start of 2025. Two-wheeler dispatches, however, dipped by 8.8 per cent in the month. Three-wheelers posted a modest growth of 3.5 per cent.

 

As far as the October-December quarter (Q3FY25) goes, PVs posted a 4.5 per cent growth (within PVs cars dipped by 8.1 per cent); two-wheelers grew by 3 per cent (riding on 13.6 per cent growth of scooters); and commercial vehicles (CVs) registered a modest growth of 1.2 per cent (within CVs passenger carrier medium and heavy commercial vehicles, or MHCVs, grew 24.5 per cent).

 

For the full CY, scooters posted a strong growth of 19.7 per cent to 66,75,231 units while motorcycles grew by almost 12 per cent to 12.3 mn units. Among MHCVs, passenger carriers (mostly buses) were strong with a 33.5 per cent growth while light commercial vehicles (LCVs) saw a 2.4 per cent decline. 

 

Shailesh Chandra, president, Society of Indian Automobile Manufacturers (Siam), said: “Year 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. The year’s growth has been primarily driven by the two-wheeler segment, which grew by 14.5 per cent as compared to the previous year, posting sales of 19.5 mn units.”

 

“In addition, PVs and three-wheelers posted their highest-ever sales in a calendar year. PVs grew by 4.2 per cent in 2024 as compared to last year, with sales of around 4.3 mn units. Three-wheelers posted a growth of 6.8 per cent in 2024 as compared to the previous year, with sales of 730,000 units. However, CVs posted a slight de-growth of (-) 2.7 per cent in 2024 as compared to the previous year, posting sales of 950,000 units, though signs of growth are visible in Q3FY25,” he added.

 

Rajesh Menon, director general of Siam, said: “PVs, CVs and three-wheelers posted their highest-ever sales of Q3FY25. Two-wheelers also posted their second-highest sales during the quarter. PV grew by 4.5 per cent with sales of 1.06 million units, compared to the same quarter of the previous year. Three-wheelers grew by 0.2 per cent in Q3FY25, 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 CVs rose by 1.2 per cent, compared to Q3FY24, with sales of 238,000 units.”

 

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.

 

"At the beginning of the year, Siam had forecast that the PV volume growth in 2025 would be 4-5 per cent due to high base effect. The final numbers are in line with the forecast," Partho Banerjee, senior executive officer, marketing & sales, Maruti Suzuki India Limited (MSIL), had told Business Standard in the first week of January.

 

"There were elections in the first half of 2024. During the summer season, people stayed indoors. The situation turned around for the PV makers from the festival season (September-October) onwards," he added.

 

The demand for SUVs continues to increase for the automobile industry. "The SUV's share in the annual PV volume sales of the industry stood at about 55 per cent in 2024. In the previous year, it was less than 50 per cent," he stated.