Car registrations reached an all-time high in October 2024, driven by strong demand for aspirational vehicles and an early start to the festival season. This surge provided much-needed relief to automakers, helping to ease concerns over inventory buildup.
According to data from Vahan, the government’s vehicle registration portal, Indian car buyers registered 478,450 units in October 2024, marking the highest monthly total ever recorded. The growth was particularly strong in Northern and Western India, where several states achieved their highest monthly figures to date. The previous record of 399,112 units was set in January 2024. On average, 15,434 units were registered daily across more than 1,400 RTOs in India during the month.
October 2024 saw a robust year-on-year growth of 34%, marking the highest increase in several months, thanks to a greater number of auspicious days during this year’s festive season. The festival period began on October 3, offering nearly a full month for celebratory purchases, whereas last year’s festival season started on October 15, significantly reducing the number of favorable days.
In 2024, eight out of the first ten months saw monthly car registrations surpass 300,000 units, with an average of 338,311 units per month, compared to 317,605 units in 2023. With October’s record-breaking 478,000 units, total car registrations for the year reached 3.383 million, reflecting a 7.5% increase over the same period in 2023. This means 88% of the total passenger vehicle registrations for 2024, which stood at 3.811 million, have already been achieved in just the first ten months.
The cumulative registration of passenger cars over September and October rose by 9% to 756,229 units, compared to 691,916 units during the same period last year.
Maharashtra, Gujarat, and Uttar Pradesh were key contributors to the strong growth seen in October. These states registered 70,759, 54,731, and 54,118 units, respectively, reflecting year-on-year growth of 49%, 30%, and 45%. Notably, Gujarat surpassed Uttar Pradesh to become the second-largest state for passenger car registrations. Rajasthan led the pack in growth, with an impressive 86% increase to 35,352 units in October 2024, raising its market share to 7.39%, up from the 5.29% average for 2024. Madhya Pradesh saw a 60% jump to 24,551 units, while Haryana’s registrations grew by 59% to 32,706 units, according to Vahan data.
A senior sales executive from a leading multinational carmaker commented that the surge in registrations in the latter half of October is a positive sign for the industry, as inventory pressures ease and discounts continue to drive sales. However, he cautioned that the true strength of festive season sales should be evaluated based on the cumulative volumes from September, October, and November, since many of last year’s auspicious days fell in November. “Our assessment is that the overall three-month sales growth will likely not exceed 5%, and we expect the full-year wholesale volume for the passenger vehicle sector to see low single-digit growth,” he stated.
Wholesale car sales in October 2024 were approximately 100,000 units below the registration figures, indicating significant inventory depletion as the festive season approached its final phase. Maruti Suzuki and Mahindra reported some of the highest dispatch volumes for the month. In a September 2024 release, the Federation of Automotive Dealers stated that they were maintaining inventory levels of 80–85 days, with total inventory value reaching Rs 79,000 crore due to aggressive OEM dispatches. This situation placed dealers under financial strain, increasing cash flow challenges. The higher registration numbers compared to wholesale sales could alleviate some of this financial pressure, which accounts for about 3–4% of the vehicle’s ex-showroom price and affects 20–25% of a dealership’s total earnings.
