The Federation of Automobile Dealers Associations (FADA) has revealed the auto industry’s sales performance for the financial year 2024 with all segments witnessing a year-on-year growth. The notable gainer in FY2024 was the passenger vehicle segment which touched a new all-time high with 39,48,143 units sold. A notable chunk of these sales came from SUVs which held a 50 per cent market share in the April 2023 – March 2024 window.
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“For the PV segment, FY24 was a milestone year, achieving an 8.45% YoY growth and reaching an all-time high. Factors such as improved vehicle availability, a compelling model mix and the launch of new models played pivotal roles. Enhanced supply dynamics, strategic marketing efforts, ever-expanding quality road infrastructure and strong demand in the SUV segment, now holding a 50% market share, significantly contributed to this success,” said FADA President, Manish Raj Singhania.
Passenger vehicle sales reached a new all-time high with over 39 lakh units sold; SUVs held 50 per cent market share.
The two-wheeler segment was also in the positive with a 9.3 per cent year-on-year growth over FY2023 with over 1.75 crore units sold in the year. Singhania attributed the growth to the launch of new products, greater availability of models and a recovery in rural demand following the COVID-19 pandemic.
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The three-wheeler segment was the biggest gainer in the financial year growing a near 49 per cent over FY2023. Sales in the segment stood at over 11.65 lakh units compared to 7.83 lakh units in the previous financial year. The commercial vehicle segment meanwhile reported cumulative sales of 10,07,006 units – a 4.82 per cent growth over FY2023.
Over 1.75 crore two-wheelers were sold in FY2024.
Passenger Vehicle Sales Slide in March 2024; 2W Posts Growth
While PV sales overall reached a new all-time high, it was a different story for March 2024. Passenger Vehicle sales shrunk 6.17 per cent year-on-year to 3,22,345 units from 3,43,527 units a year ago. Sales were also down compared to February 2024 which stood at 3,30,107 units.
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“The PV sector encountered challenges, with a MoM decrease of 2% and a YoY fall of 6%. The downturn was influenced by heavy discounting and selective financing further affected by economic worries and the electoral climate. Nonetheless, positives such as improved vehicle availability, increased stock levels and new model launches did stimulate demand in certain areas. The impact of election activities and changes in festival dates also played a role in sales dynamics,” Singhania said.
Commercial vehicle sales were also down year-on-year in March 2024 falling from 96,984 units a year ago to 91,289 units.
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The two-wheeler segment showed a more positive outlook with a 5.44 per cent year-on-year growth and a 6.28 per cent growth month-on-month. Sales in March 2024 stood at 15,29,875 units – up from 14,50,913 units in March 2023 and 14,39,523 units in February 2024.
Two-wheeler sales remained in the positive for March 2024 though passenger vehicle sales slid year-on-year.
“The 2W segment demonstrated resilience and adaptability, with electric vehicle (EV) sales surging due to the expiration of the FAME 2 subsidy on March 31st. This led to a notable boost in the 2W-EV market share to 9.12%. Positive market sentiment was supported by seasonal events, improved vehicle supply, and financial incentives. Despite facing market volatility and intense competition, the industry is strategically evolving, particularly in the premium and EV categories, signalling a bright future,” Singhania added.
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The three-wheeler segment continued its strong showing in monthly sales as well with a 17.13 per cent growth year-on-year with 1,05,222 units sold – up from 89,837 units a year ago.
FADA adopted a cautious outlook for the near term highlighting that the unchanged lending rate, upcoming elections and continued inflationary trend could dampen auto sales in the coming months. The dealer body however added that new product launches, improved vehicle supply, favourable government policies and a good monsoon could help revive demand over the course of the year.
