The Indian automobile industry witnessed healthy growth in the first quarter of the 2024-25 fiscal year according to data released by the Society of Indian Automobile Manufacturers (SIAM). The industry saw a robust performance across all segments, including passenger vehicles, commercial vehicles, three-wheelers, and two-wheelers, highlighting a positive trend for the industry.
Passenger Vehicles Saw A Milestone Quarter
Passenger vehicles marked a significant milestone with sales surpassing one million units in Q1 for the first time. Sales grew by 3% compared to the same period last year, reaching a total of 1,026,006 units. This growth was driven primarily by utility vehicles, which saw an 18% increase, and even vans, which rose by 9.2%. Despite a slight decline in passenger car sales by 17.5%, the overall segment performance remained strong.
Two-Wheelers & Three-Wheelers Witnessed Double-Digit Growth
The two-wheeler segment experienced substantial growth with sales rising by 20.4% to nearly five million units. Scooters led this charge with an impressive 28.2% growth, while motorcycles and mopeds also posted significant increases. The three-wheeler segment saw a 14.2% growth, reaching 165,081 units, the highest ever for Q1, driven by both passenger carriers and goods carriers.
Commercial Vehicles Show Steady Improvement
Commercial vehicles also showed positive momentum with a 3.5% increase in sales, totalling 224,209 units. This growth was more pronounced in the medium and heavy commercial vehicles (M&HCVs) segment, which saw a 9.7% rise. However, the light commercial vehicles (LCVs) segment exhibited only a marginal increase of 0.1%.
June 2024 Performance
In June 2024 the auto industry produced 2,336,255 units of passenger vehicles, three-wheelers, two-wheelers, and quadricycles. Domestic sales figures were also noteworthy with passenger vehicles hitting 337,757 units, three-wheelers at 59,544 units, and two-wheelers reaching 1,614,154 units.
Exports Have Been A Mixed Bag
Export data presents a mixed picture. Passenger vehicles exports grew significantly by 18.6% over the April-June period, with utility vehicles contributing a substantial 40.2% increase. The export of M&HCVs and LCVs grew by 11.3% and 6.3% respectively. However, three-wheeler exports saw a slight decline of 2.8%, primarily due to reduced demand for e-rickshaws and e-carts.
SIAM President Vinod Aggarwal expresses optimism about the coming months, citing positive monsoon forecasts and the festive season as potential growth drivers. The automotive sector shows resilience and adaptability, and is poised to continue its upward trajectory benefiting from both domestic demand recovery and favourable export conditions.
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