SUVs drive growth: Carmakers record highest ever yearly sales of 4.27 mn units in 2024

New Delhi: Domestic passenger vehicle (PV) sales rose 4.2% to a record 4.27 million vehicles in calendar 2024, buoyed by demand for sport-utility vehicles (SUVs).

While sales of utility vehicles - comprising SUVs, vans and multipurpose vehicles (MPVs) - grew nearly 17% to 2.75 million units during the year, passenger cars reported a 14% decline to 1.37 million units, showed data issued Monday by the Society of Indian Automobile Manufacturers (Siam).

Shailesh Chandra, president, Siam said, "2024 has been reasonably good for the auto industry. Positive consumer sentiments and the country's macroeconomic stability helped in propelling reasonable growth for the sector across vehicle segments. This year, growth has been primarily driven by the two-wheeler segment."



Total sales of motorcycles, scooters and mopeds increased by 14.5% last year to 19.54 million units.

"In addition, passenger vehicles and three-wheelers posted their highest ever sales in a calendar year," he said, adding three-wheeler sales grew 6.8% in 2024 to 730,000 units. However, truck and bus sales fell 2.7% last year to 950,000 units.

ET was the first to report on December 23 that after slow growth in the first six months of the fiscal, car sales have started showing signs of turnaround and will close at a record high in calendar 2024.

Growth in the early part of the fiscal year was affected by extreme heatwaves and general election. Passenger vehicle sales started to eventually recover, growing about 1% in October and 4% in November.

Chandra said early signs of recovery in the commercial vehicle segment were seen in the December quarter.


Rajesh Menon, director general, Siam, said, "Passenger vehicles, commercial vehicles, and three-wheelers posted their highest ever sales for Q3. Two-wheelers also posted their second-highest sales for Q3."

While passenger vehicle sales grew by 4.5% to 1.06 million units in the third quarter of the fiscal year, three-wheeler sales rose by 0.2% to 189,000 units.

Two-wheeler sales grew by 3% to 4.9 million units in the quarter under review, and commercial vehicles by 1.2% to 238,000 units.

In December, passenger vehicle sales rose by 10% to 315,000 units. However, two-wheeler sales fell by 8.8% to 1.1 million units due to weak demand for motorcycles.