High on SUVs: India records all-time high passenger vehicle sales in FY24

In FY24, India's passenger vehicle (PV) retail sales soared to an all-time high of 3,948,143 units, marking an 8.45% increase over FY23, driven by improved vehicle availability, a diverse model mix, and new launches. Notably, SUVs secured a 50% market share for the first time. However, PV sales dipped by 6% in March due to heavy discounting and economic uncertainties, totalling 322,345 units compared to 343,527 units in March 2023. Despite this, overall auto retail sales in FY24 surged by 10.29%, reaching 24,530,334 units, with three-wheelers leading the growth at 48.83%, followed by two-wheelers (9.3%) and PVs.

Fada President, Mr. Manish Raj Singhania, attributed the surge in three-wheeler sales to cost-effective fuel options and new electric models, while two-wheeler sales were bolstered by enhanced model availability and positive market sentiment. Commercial vehicles experienced the lowest growth at 4.82% during FY24. March saw a modest 3.14% increase in total auto sales, with electric two-wheelers gaining momentum following the expiration of the FAME-II subsidy. Despite near-term challenges such as declining consumer sentiment and upcoming elections, the industry remains cautiously optimistic, focusing on innovative approaches to achieve balanced growth across all segments.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.