Indian passenger vehicle and two-wheeler sales surge in FY24
India's passenger vehicle and two-wheeler retail sales saw a significant rise in FY24 compared to FY23. The Federation of Automobile Dealers Associations (FADA) reported that passenger vehicles recorded a retail sale of 3,948,143 units in the previous fiscal year. This represents an 8.45% increase from the 3,640,399 units sold in FY23. Despite price increases and inflation, the sector managed to overcome these challenges and register growth.
March 2024 sees a dip in PV sales
Despite the annual growth, March 2024 witnessed a 6.17% drop in wholesale numbers for the PV segment compared to March 2023. FADA also reported a decrease of 2.35% in PV retail sales in March 2024, compared to February of the same year. This decline was attributed to heavy discounts and selective financing, which impacted monthly sales figures negatively.
Factors driving record-breaking sales in FY24
Despite the monthly setback, FADA highlighted that the annual growth recorded in FY24 was a record-breaking sales surge. This was driven by improved vehicle availability, diverse models, as well as high demand for SUVs, which accounted for half of total PV sales. FADA's President Manish Raj Singhania, referred to FY24 as a landmark year for the PV category due to these factors.
Two-wheeler sales witness significant growth in FY24
Two-wheeler sales also experienced a substantial increase of 9.30% in FY24, in comparison to the previous fiscal year, with 17,517,173 units sold across India. This growth was attributed to an expanded range of models and new product launches in both ICE and EV segments. Positive market mood and strategic premium category launches, also contributed to the rise in two-wheeler sales during this period.
Electric two-wheeler market share hits record high
The electric two-wheeler market share climbed to 9.12% for the first time, according to FADA. The end of the FAME 2 subsidy on March 31 led to a noticeable rise in EV sales, as buyers rushed to purchase EVs before the scheme's end. Singhania noted that this growth was further boosted by special schemes and the rural market's recovery from COVID-19, contributing significantly to the overall increase in two-wheeler sales.
