Indian Automobile Sales Accelerate Despite 2024 Challenges

In 2024, India's retail automobile sales grew by 9.1%, with two-wheelers, three-wheelers, and tractors hitting new records despite challenges like extreme weather, elections, and monsoon issues. However, December sales declined, except for tractors. FADA remains optimistic about 2025 with potential growth driven by new launches and improved market conditions.

India's automobile sales defied expectations in 2024, surging by 9.1% to reach 2.61 crore units. This growth was achieved despite significant challenges including extreme weather conditions, election-related disturbances, and inconsistent monsoon patterns, according to the Federation of Automobile Dealers Association (FADA).

The data reveals impressive growth across various segments: two-wheeler sales soared by 10.7%, three-wheelers rose by 10.4%, passenger vehicles grew by 5.1%, and tractors increased by 2.5%. Commercial vehicle sales, in contrast, remained almost stagnant, showing a mere 0.07% rise.

December 2024 saw a dip in overall sales by 12.4%, with significant declines in two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles. Interestingly, tractor sales bucked the trend, recording a 25.7% increase. Looking ahead to 2025, FADA remains optimistic, with 66% of dealers predicting growth, buoyed by strategic OEM initiatives and policy-level support.

(With inputs from agencies.)