Summary:

According to the Federation of Automobile Dealers Associations (FADA), automobile retail sales increased by 9% year-on-year in 2024, driven by strong demand for two-wheelers and passenger vehicles, despite a challenging business environment. Total vehicle registrations rose to 2,61,07,679 units in 2024, up from 2,39,28,293 in 2023. FADA President C.S. Vigneshwar highlighted the industry's resilience despite challenges such as heatwaves, elections, and unpredictable monsoons, with the two-wheeler segment expanding due to new model launches and rural demand.

The Passenger Vehicle (PV) category grew by 5%, reaching 40,73,843 units, aided by network expansion and new product launches. However, increasing inventories and aggressive discounting put pressure on margins. Three-wheeler registrations rose by 11%, reaching 1,221,909 units, while tractor sales increased by 3%, totaling 894,112 units. Commercial vehicle sales remained stable. FADA anticipates growth in the two-wheeler segment and high consumer demand for SUVs and EVs, but price sensitivity and financing rates remain concerns.

Source: IBEF 

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