Indian auto industry kickstarts 2024 on a positive note. Check details
- In January 2024, the Indian auto market experienced a significant 23.2 per cent jump across all segments, according to the latest report from SIAM. Passenger vehicles (PVs) saw a notable increase of 13.8 per cent, while two-wheelers surged by 26.2 per cent.
The Indian automotive industry kicked off the year 2024 on a strong note, witnessing a significant surge in domestic sales. According to a report by the Society of Indian Automobile Manufacturers (SIAM), domestic sales in January 2024 grew by 23.2 per cent year-on-year (YoY) to reach 18,88,194 units. This growth was fueled by a particularly strong performance in the passenger vehicles (PVs) segment.
The PV segment registered a growth of 13.8 per cent YoY, with total domestic sales reaching 3,39,441 units in January. Vinod Aggarwal, President of SIAM, attributed this growth to positive consumer sentiments, highlighting the resilience of PV sales in the market.
Within the PV segment, the utility vehicle (UVs) sub-segment stood out with a remarkable 34.5 per cent YoY growth, recording a total of 2,00,917 units sold. However, passenger cars experienced a slight decline of 7.6 per cent to 1,26,505 units, while van sales saw a modest 1.5 per cent YoY increase to 12,019 units.
The Federation of Automobile Dealers Associations (FADA) reported similar trends, noting that a total of 393,250 PVs were registered in January, marking a 13.30% increase from the previous year. This record-breaking performance contributed significantly to the overall growth of the industry, which achieved a 15.03% growth in retail sales.
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On the two-wheeler front, the segment saw a robust growth of 26.2 per cent YoY, with total sales reaching 14,95,183 units in January. This growth was driven by strong demand across all categories, including scooters, motorcycles, and mopeds, which saw increases of 29.6 per cent, 25.1 per cent, and 14.4 per cent respectively.
FADA's report echoed this growth, stating that the two-wheeler segment registered a 14.96 per cent YoY growth, with total sales of 14,58,849 units. The association attributed this growth to strong rural demand, supported by factors such as good crop production, a favourable monsoon, and government support for the rural economy.
Looking ahead, Aggarwal believes that the strong performance of the auto sector is likely to continue, driven by factors such as recovery in the rural market and the government's focus on mobility in Budget 2024. The strategic emphasis on strengthening the electric vehicle ecosystem, including charging infrastructure and public transport, is expected to further boost growth momentum across the sector.