Society of Indian Automobile Manufacturers (SIAM) released its data on the Indian auto industry’s performance for September 2024 and the second quarter (July-September) of FY 2024-25, highlighting a combination of growth and decline across different vehicle categories. The total production of vehicles in September 2024 reached 2,773,039 units, showcasing the industry's strength despite challenges in some segments.
Passenger vehicle sales for September 2024 saw a slight decrease of 1.4%, with 356,752 units sold compared to 361,717 units in September 2023. This decline was largely due to a drop in passenger car sales, which fell by 12.8%. However, the utility vehicle segment performed positively, registering a 6.4% growth, while van sales rose by 6.8%. These results reflect the mixed consumer demand within the passenger vehicle sector as environmental and market factors influenced the overall outcome.
The three-wheeler segment sales showed a steady 6.7% increase in September 2024. Passenger carriers drove much of this growth with a 10.2% increase, while goods carriers saw a modest rise of 8.1%. However, the e-rickshaw category experienced a significant drop of 49.2%, reflecting changing trends in urban mobility. The e-cart segment, on the other hand, displayed a remarkable increase of 146.3%.
Two-wheeler market posted strong results in September. Sales grew by 15.8%, with scooters registering a 14.1% rise, while motorcycles and mopeds increased by 16.4% and 22.3%, respectively. This growth reflects increasing demand for affordable and fuel-efficient mobility options, particularly in rural and semi-urban regions. The solid performance of two-wheelers stands in contrast to the passenger vehicle segment's challenges, highlighting divergent consumer preferences within the market.
For the second quarter of FY 2024-25, the data shows an overall production of 8,073,564 vehicles across all categories. Passenger vehicle sales for Q2 experienced a 1.8% decline, with total sales falling from 1,074,395 units in Q2 FY 2023-24 to 1,055,137 units in Q2 FY 2024-25. The passenger car segment saw a sharp 19.6% drop in sales, while utility vehicles grew by 9%, indicating a shift in consumer interest towards larger and more versatile vehicles.
The commercial vehicle sector struggled during the second quarter, with a decline of 11% in total sales. Medium and heavy commercial vehicles (M&HCVs) saw a 12.2% decrease in sales, while light commercial vehicles (LCVs) dropped by 10.2%. Despite these declines, there was a notable 13.8% increase in sales of M&HCV passenger carriers, indicating continued demand for public transport vehicles even as the goods carrier segment faced challenges.
The three-wheeler segment maintained its upward trajectory in Q2 FY 2024-25, with a 6.6% rise in sales compared to the same period in the previous year. The two-wheeler market also exhibited strong growth, with sales rising by 12.6%, led by a 16.9% increase in scooter sales and a 10.2% growth in motorcycles. This indicates that demand for two-wheelers remains robust, likely driven by their affordability and versatility.
SIAM President Shailesh Chandra noted that despite the overall strength of the market, some segments, particularly passenger vehicles and commercial vehicles, were impacted by heavy rainfall in key states and the Shradh period in September, which traditionally slows consumer spending. He expressed optimism that with the arrival of the festive season and increased infrastructure spending, the market would see a rebound in the coming months.
The data for the April-September 2024 period also showed mixed results. While total vehicle production reached 15,622,388 units, passenger vehicle sales remained almost flat with only a 0.5% increase compared to the same period last year. Commercial vehicles posted a 4.2% decline, largely driven by lower demand for goods carriers. The two-wheeler segment continued its strong performance, growing by 16.3% during the period, reflecting sustained demand in the affordable mobility segment.
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