The Indian automotive industry showed mixed performance in October 2024 with notable gains in passenger vehicle and two-wheeler sales fuelled by strong festive demand. According to data from the Society of Indian Automobile Manufacturers (SIAM), production across all segments, including passenger vehicles, three-wheelers, and two-wheelers, reached 28,82,996 units, reflecting a 10% year-on-year increase. However, segment-wise results reveal varying degrees of growth influenced by consumer preferences and seasonal trends.
Passenger vehicles led the growth, achieving record sales of 3,93,238 units in October 2024, a 0.9% increase over the previous year. This performance was driven by rising demand for utility vehicles (UVs), which saw a 6.3% production increase and a 13.9% increase in domestic sales, totalling 2,25,934 units. Utility vehicles also excelled in exports, posting a significant 61.7% rise, which aligns with India's increasing role as a global automotive exporter. Meanwhile, production of passenger cars declined by 18% to 1,28,097 units, and domestic sales dropped by 17.3%, indicating shifting consumer preference towards larger utility vehicles and SUVs, which offer versatility and durability for Indian roads.
The two-wheeler segment also experienced substantial growth, achieving its highest-ever sales for October with 21,64,276 units, marking a 14.2% rise over the same month in 2023. Scooters led this surge with a 22.3% increase in domestic sales, reaching 7,21,200 units. Motorcycles followed with an 11% increase, accounting for 13,90,696 units sold domestically. Two-wheeler exports also saw a strong performance, with a 25.4% rise, underscoring the segment’s export potential. This surge reflects the affordability and convenience of two-wheelers, which remain popular in both urban and rural markets across India.
In contrast, the three-wheeler segment recorded a slight decline in domestic sales, decreasing by 0.7% to 76,770 units. Passenger carriers within this category saw marginal growth at 2%, while goods carriers dropped by 1%. E-rickshaws experienced a sharp decline of 49.4% in domestic sales, possibly due to market saturation or limited demand in specific regions, though e-carts saw a significant 129.5% increase. These mixed results suggest that the three-wheeler market may require strategic adjustments to address changing consumer and business needs.
Despite these varied performances the overall market benefited from October's festive season, which included both Dussehra and Diwali, traditionally high-demand periods. Rajesh Menon, Director General, SIAM, mentioned the role of festive consumer sentiment, noting record sales figures in passenger vehicles and two-wheelers, bolstered by an approximate 30% increase in vehicle registrations compared to October 2023. However, the minor setback in three-wheelers suggests ongoing challenges in that segment.
Utility vehicles continue to drive growth in the passenger vehicle segment, while two-wheelers remain a staple for cost-conscious consumers. The subdued performance in three-wheelers particularly in e-rickshaws points to a need for market recalibration to maintain momentum across all segments.
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