The Indian automobile industry demonstrated resilience and recorded a satisfactory performance in FY24 amidst a backdrop of robust economic growth. According to data released by the Society of Indian Automobile Manufacturers (SIAM), the industry showcased a growth of 12.5% in domestic sales compared to the previous fiscal year.
Sales Performance Overview
The passenger vehicle segment led the growth trajectory, with overall sales touching nearly five million units, including 4.2 million in the domestic market, reflecting a growth of 8.4%. Exports accounted for approximately 0.7 million units.
The two-wheeler segment continued its recovery path, witnessing a significant growth of over 13% in domestic sales, reaching almost 18 million units. However, this figure still remains lower than the peak sales of 21 million units in FY19.
The domestic commercial vehicle segment experienced marginal growth, reaching 9.7 million units. Within this segment, there was a drop in light commercial vehicles (LCVs) and small commercial vehicles (SCVs) due to degrowth in the compressed natural gas (CNG) segment. The three-wheeler segment nearly reached its previous peak of 0.7 million units in FY19.
Exports
Overall, exports remained under stress during the financial year, with notable declines in commercial vehicles, two-wheelers, and three-wheelers. However, there was a good recovery seen in the last quarter, especially for two-wheelers.
Industry Outlook
Commenting on the performance, Vinod Aggarwal, President of SIAM, expressed optimism about the industry's outlook, citing positive macroeconomic indicators and a promising monsoon outlook. He highlighted the industry's commitment to sustainability, noting the production of vehicles compliant with 20% ethanol and significant growth in electric passenger vehicles and two-wheelers.
Q4 Performance Highlights
In the fourth quarter of FY24, two-wheelers recorded robust sales of 4.5 million units, reflecting a significant growth of 25% compared to the same period in the previous fiscal year. Passenger vehicles registered a growth of 12%, surpassing sales of more than 1.1 million units. Three-wheelers posted sales of 1.65 lakh units with a growth of 7%, while commercial vehicles experienced a slight decline of (-) 4%, with sales exceeding 2.68 lakh units.
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