PV retail grows 8.45% in FY24, two-wheeler numbers surge by 9.30%: FADA

Passenger vehicles in India registered a retail sale number of 39,48,143 units in the last fiscal that concluded in March 2024, up by 8.45 per cent compared to 36,40,399 units sold in FY23, revealed Federation of Automobile Dealers Associations (FADA), the apex national body of automobile retail industry in the country. It also stated that in March 2024, the passenger vehicle segment in India recorded a wholesale number of 322,345 units, registering a 6.17 per cent decline from 343,527 units posted in March 2023.

The official statement from FADA further revealed that the Indian passenger vehicle market witnessed a retail sales slump of 2.35 per cent last month, compared to February 2024, when it recorded 330,107 units. The organisation attributed this downturn to heavy discounting and selective financing. Speaking about the year-on-year growth recorded in FY24, the organisation said that it was an all-time high sales surge propelled by improved availability of vehicles alongside a mix of models and high demand for SUVs. The statement further revealed that SUVs contributed 50 per cent of total PV sales in the last fiscal.

Speaking on the sales performance, FADA President Manish Raj Singhania said that for the passenger vehicle segment, the last fiscal was a milestone year. “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 per cent market share, significantly contributed to this success," he added.

Two-wheeler sales surged 9.30 per cent

Two-wheeler sales in India surged by 9.30 per cent in the last financial year, compared to the previous fiscal. In FY24, two-wheelers sold 1,75,17,173 units across India, up from 1,60,27,411 units recorded in the previous financial year. FADA has stated that despite the economic concerns, election uncertainties and intense competition, the two-wheeler segment showcased strategic evolution, especially in the premium and electric vehicles.

The organisation attributed this growth in retail sale numbers for the two-wheelers to enhanced availability of models, the introduction of new motorcycles and scooters in both ICE and electric vehicle segments, an upbeat market sentiment, and strategic premium segment launches.

The electric two-wheelers' market share jumped to 9.12 per cent for the first time, stated FADA. It claimed that the expiration of the FAME 2 subsidy on 31st March resulted in a notable increase in EV sales as consumers rushed to buy electric vehicles before the expiry of the scheme.

Speaking about the two-wheeler sales, FADA President said that in FY24, the segment saw a nine per cent growth, driven by a rich mix of factors including enhanced model availability, new product introductions, and positive market sentiment, further augmented by special schemes and the rural market's recovery from Covid. “The growth in EVs and strategic launches in premium segments also played a critical role, overcoming challenges such as supply constraints and heightened competition," he added.