The Society of Indian Automobile Manufacturers (SIAM) released data today revealing a surge in domestic vehicle sales for the financial year 2023-24.
According to the latest figures, total vehicle sales soared by 12.5%, reaching a staggering 23.8 million units, compared to 21.2 million units in the previous fiscal year. Passenger vehicle sales particularly witnessed a remarkable uptick, with wholesales surging by 8.4% to 42,18,746 units, marking a substantial increase from the 38,90,114 units recorded in FY23.
The robust growth trend extended to two-wheelers as well, with sales climbing by 13.3% to 1,79,74,365 units in FY24, up from 1,58,62,771 units in the preceding financial year.
Commenting on sales data of 2023-24, Mr Vinod Aggarwal, President, SIAM said, “On the backdrop of a robust economic growth of 7.6% based on conducive policies of Government of India, the Indian Automobile Industry has posted a satisfactory performance with domestic industry growing by 12.5% during the last Financial Year.”
Passenger Vehicle segment led the growth with overall sales touching almost 5-million units including 4.2 million domestic (growth of 8.4%) and 0.7 million exports. Two-wheeler segment continued the recovery path with a handsome growth of over 13% in domestic sales to almost 18 million units, even though still lower than the earlier peak of 21 million units in FY19.
Domestic Commercial Vehicle industry had a marginal growth to 9.7 million units and within that, some drop was experienced in LCVs and SCVs due to degrowth in CNG segment. The growth in Commercial vehicles was also impacted due to migration to higher tonnage trucks which created higher payload capacity, that is not reflected in the number of units. Three-Wheeler industry is almost close to the earlier peak of 0.7 million units in FY 19.
Overall exports remained under stress during the last financial year with sizeable drop in Commercial Vehicles, Two-Wheelers and Three-Wheelers, though Passenger vehicles grew marginally. However, good recovery was seen in the last quarter, especially for two-wheelers, indicating better potential for the current year.
All in all, it has been a satisfactory performance for the Indian Automobile Industry.
The year also demonstrated the sustainability commitments of the Auto Industry as it commenced producing vehicles which are material compliant to 20% Ethanol and witnessed growth of 90% in Electric Passenger Vehicles and 30% in Electric Two-Wheelers.
Vinod Aggarwal expressed optimism, stating, the industry remains optimistic as the macroeconomic outlook remains positive. Coupled with a promising monsoon forecast, we anticipate sustained growth for the industry in the upcoming year.
Commenting on the Q4 performance of 2023-24, Mr Rajesh Menon, Director General, SIAM said, “Two-Wheelers posted sales of 4.5 Mn units with a significant growth of 25%, compared to Q4 of FY 2022-23. Passenger Vehicle registered growth of 12% and posted sales of more than 1.1 Mn units. Three-Wheelers posted sales of 1.65 Lakh units with a growth of 7%. Commercial Vehicles registered degrowth of (-) 4%, by posting sales of more than 2.68 Lakh units.”
