Vehicle registrations in India see 15% YoY drop in December
The Indian auto sector has witnessed a major slump in December, with the two-wheeler category being the worst hit. As per data from VAHAN, the national vehicle registry, there was a whopping 15% decline in overall vehicle registrations from December 1-24, 2024. The number was at about 13.90 lakh units as opposed to 16.40 lakh units during the same period last year.
Two-wheeler category suffers most
Notably, the two-wheeler category has been the worst hit by this slump, with a 20% drop in registrations. Meanwhile, passenger vehicles (PVs) and commercial vehicles (CVs) saw a marginal dip of 1% and 9%, respectively. This means that the blow on these segments wasn't as hard as it was on two-wheelers.
Petrol vehicles' registrations see significant drop
The fall in vehicle registrations was largely driven by a steep 21% dip in those for petrol-powered models. However, those running on electric and cleaner fuels like CNG witnessed a rise in registration by 9% and 8%, respectively. This indicates a growing consumer preference for more environmentally friendly transportation options amid the overall slump.
Signs of recovery emerging
Despite the overall decline, there were signs of recovery in the third week of December. The overall decrease in registrations narrowed from 20% to 15%, while the two-wheeler segment also saw an improvement with a drop from 25% to 20%. This indicates a potential turnaround for the auto sector as it heads into the new year.
