India's Automobile Sales Reach Record 2.5 Crore Units in 2024 with 11.6% Growth

India’s automobile market achieved a historic milestone in 2024, recording a significant 11.6% growth compared to the previous year. According to the Society of Indian Automobile Manufacturers (SIAM), sales reached an all-time high of 2.5 crore units, up from 2.3 crore units in 2023. This impressive performance solidifies India’s position as the world’s third-largest car market.

Key Drivers of Growth

SIAM President Shailesh Chandra attributed the growth to stable macroeconomic conditions and positive consumer sentiment. These factors fueled increased demand across all vehicle segments, showcasing a resilient and thriving automobile industry.

Two-Wheelers Lead the Charge

The two-wheeler segment emerged as the primary growth driver, registering a robust 14.5% increase in sales. A total of 1.95 crore two-wheelers were sold in 2024, underscoring their continued dominance in India’s vehicle market.

Passenger and Three-Wheeler Segments Show Positive Trends

Passenger vehicles (PVs) also posted a notable performance with sales of 43 lakh units, reflecting a 4.2% rise. Meanwhile, the three-wheeler segment recorded a 6.8% growth, with 7.3 lakh units sold. These trends highlight the broad-based expansion of the automobile sector in 2024.

December Dispatches: Mixed Performance

The dispatches to dealers in December 2024 presented a mixed picture:

• Passenger Vehicles: Dispatches rose by 10%, reaching 3,14,934 units compared to 2,86,390 units in December 2023.

• Two-Wheelers: Dispatches declined by 9%, with 11,05,565 units dispatched compared to 12,12,238 units in December 2023.

• Three-Wheelers: Dispatches increased to 52,733 units, up from 50,947 units in December 2023.

Record-Breaking Quarterly Performance

The October-December quarter of 2024 witnessed the highest-ever sales for passenger vehicles, commercial vehicles, and three-wheelers. Passenger vehicle sales during this period grew by 4.5%, reaching 10.6 lakh units compared to the same quarter in the previous year. This strong quarterly performance underscores the sustained momentum in the sector.

Supportive Government Policies

SIAM Director General Rajesh Menon highlighted the critical role of government policies in fostering industry growth. The continuation of a stable policy environment from previous years provided a solid foundation for the sector's success in 2024. Initiatives such as incentivizing electric vehicles and promoting clean mobility further strengthened the ecosystem.

Positive Outlook for 2025

As the new year begins, the industry is optimistic about sustaining this growth trajectory. Initiatives like the Bharat Mobility Global Expo are expected to boost innovation and create new opportunities. With manufacturers leveraging the current momentum, 2025 is poised to be another promising year for India’s automobile market.

Conclusion

India's automobile sector achieved remarkable growth in 2024, with record sales of 2.5 crore units and an 11.6% year-on-year increase. This milestone reinforces India’s position as a global automotive powerhouse. The two-wheeler segment played a pivotal role in driving this growth, complemented by steady gains in passenger and three-wheeler sales.

The robust performance was underpinned by stable macroeconomic conditions, positive consumer sentiment, and supportive government policies, creating a conducive environment for the industry’s success. Furthermore, record-breaking quarterly performances and strong dealer dispatches highlight the sector's resilience and potential.

As 2025 begins, the industry is well-positioned to sustain its momentum, bolstered by initiatives like the Bharat Mobility Global Expo and a focus on clean and sustainable mobility solutions. With continued innovation and collaboration, India’s automobile market is set to achieve even greater heights in the coming years.