The Indian automotive sector delivered a mixed performance in 2024, reflecting the industry’s resilience amid evolving consumer dynamics and macroeconomic challenges. While some segments charted record-breaking growth, others faced a marginal slowdown.
Passenger Vehicles: A Marginal But Notable Rise
Passenger vehicles (PVs) witnessed their highest sales ever, marking a 4.2% growth with 42,74,793 units sold in 2024. Utility vehicles (UVs) emerged as the star performers, growing by 16.8% year-on-year to 27,49,932 units. This rise underscores a growing consumer preference for larger and more versatile vehicles. However, passenger cars declined by 14.4%, suggesting a shift in consumer choices, while vans posted a modest increase of 5.2%.
The December domestic sales figure of 3,14,934 PV units reflected a robust 10% year-on-year growth. However, data discrepancies surfaced due to Tata Motors’ inclusion in the SIAM press release but exclusion from reports. Adjusted figures excluding Tata Motors indicated 2,70,704 units sold in December, up from 2,42,920 in the previous year.
Commercial Vehicles: Mixed Outcomes Across Categories
Commercial vehicles (CVs) experienced a slight contraction of 2.7% in domestic sales, closing the year with 9,51,991 units sold. Medium and heavy commercial vehicles (M&HCVs) saw a 3.2% drop in sales, largely influenced by declining demand for goods carriers, which contracted by 8.5%. However, the passenger carrier sub-segment posted a 33.5% growth, driven by increased demand for public transport solutions.
Light commercial vehicles (LCVs) saw a marginal dip in overall sales by 2.4%, although passenger carriers within this segment grew by 2.7%, buoyed by increasing intra-city mobility demands.
Two-Wheelers: A Revival Of Mobility
The two-wheeler segment led the charge in growth, contributing significantly to the industry’s overall performance. Domestic sales grew by 8.8% to 1,50,39,570 units in 2024. Scooters recorded the fastest growth at 19.1%, followed by motorcycles at 8%. Mopeds, however, struggled, reflecting a consumer pivot towards more versatile options.
This surge was attributed to recovering consumer sentiment in rural and semi-urban markets, buoyed by stable fuel prices and better financing options. The segment’s rebound signifies a return of mobility in smaller towns, a critical growth driver for two-wheelers.
Three-Wheelers: A Steady Climb
The three-wheeler segment expanded by 6.8%, achieving sales of 7,28,670 units. While passenger carriers grew by 9.7%, the e-rickshaw category faced a sharp contraction of 43.1%, reflecting the challenges of scaling electric mobility in this segment. Goods carriers performed admirably, growing by 8.2%, underscoring the growing reliance on these vehicles for last-mile logistics.
Sector Dynamics
Shift to Utility Vehicles: The notable growth of utility vehicles highlights changing consumer preferences towards spacious and multifunctional options, potentially driven by increased urbanisation and improving road infrastructure.
Challenges in Electric Mobility: The decline in e-rickshaw sales despite policy support signals hurdles in affordability, infrastructure, and consumer confidence in electric options.
Commercial Vehicle Stagnation: While the M&HCV segment is witnessing a gradual recovery, overall stagnation suggests that the sector remains vulnerable to economic fluctuations and structural bottlenecks.
Rural Resurgence: Two-wheeler growth underscores recovering rural demand, signalling the resilience of smaller markets in driving overall automotive sales.
Outlook For 2025
Industry experts are optimistic about sustained growth in 2025, driven by continued macroeconomic stability, infrastructure developments, and a strong policy framework supporting clean mobility. The Bharat Mobility Global Expo and other initiatives are expected to catalyse innovation and demand across segments.
While challenges remain, particularly in the electrification of mobility and addressing supply chain issues, the industry appears poised to build on the positive momentum of 2024.
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