Driven by robust demand for sports utility vehicles, passenger vehicle sales in India soared to a record high in FY24 with dispatch of more than 42 lakh units.
Overall vehicle dispatches from maker to dealers rose to 42.3 lakh units in FY24, an increase of 9%, compared with 38.9 lakh units in FY23.
SUV’s share to overall passenger vehicle dispatches rose to 50.4% in FY24 against 43% in FY23.
“This is the first time passenger vehicle sales have crossed the 40 lakh mark in India”, said Maruti Suzuki India (MSI) Executive Committee Member Shashank Srivastava.
SUV segment grew by 28% year-on-year; hatchbacks by 12%; sedans by 6%, while MPVs (Multi Purpose Vehicles) grew by 19% and vans by 6.5% in FY24, Mr. Srivastava said.
But he said the industry expects to see “single-digit” sales growth in the current fiscal due to the high base effect of FY24.
MSI reported its highest-ever yearly domestic sales of 17,93,644 units and record exports of 2,83,067 units in FY24.
While rival Hyundai Motor India (HMI) also recorded its best-ever overall sales at 7,77,876 units for FY24, a growth of 8%, over 7,20,565 units in FY23.
Soaring rural demand
HMI COO Tarun Garg said the industry growth in rural market outpaced urban with SUVs continuing to be the fastest-growing segment.
Toyota Kirloskar Motor (TKM) also reported its highest-ever wholesales of 2,63,512 units in FY24, an increase of 48%, against 1,77,683 units in FY23.
Mahindra & Mahindra reported a 28% increase in passenger vehicle wholesales at 4,59,877 units in FY24 as against 3,59,253 in FY23.
While, Tata Motors said its passenger vehicle wholesales stood at 5,73,495 units, up 6% from 5,41,087 units in FY23.
“In FY24, the company’s passenger vehicles (including electric vehicles), posted its third consecutive year of highest-ever sales with wholesales of 5,73,495 units and retail sales growing around 10% versus FY23,” Tata Motors Passenger Vehicles MD Shailesh Chandra said.
He added, “Going forward, we expect demand for passenger cars to remain strong”, but echoed all other automakers expectation of “single digit” growth in the current fiscal due to the high base effect of FY24.
Two-wheelers
In the two-wheeler segment, TVS Motor Company reported its highest-ever sales of 41.91 lakh units in FY24, a growth of 14% compared with 36.82 lakh units in FY23.
Suzuki Motorcycle India also reported its highest-ever sales of 11,33,902 units in FY24, a growth of 21% as against 9,38,371 units in FY23.
Royal Enfield reported 14% y-o-y growth in domestic sales last fiscal at 8,34,795 units as against 7,34,840 units in FY23.
