The Federation of Automobile Dealers Association (FADA) has said that retail automobile sales in India grew 9.1 per cent in 2024 to 2.61 crore units, defying multiple headwinds like extreme weather, elections, and uneven monsoons. It stated segment-wise, two-wheeler sales grew 10.7 per cent, three-wheelers 10.4 per cent, passenger vehicles 5.1 per cent and tractor 2.5 per cent segments posted growth, while commercial vehicles remained nearly flat at 0.07 per cent.
Three-wheelers, passenger vehicles and tractor segments reached new all-time highs; two-wheelers almost breached its 2018 peak and commercial vehicles have yet to surpass its 2018 level. Further, it said challenges for internal combustion engine two-wheelers included finance constraints and rising competition from electric vehicles. Commercial vehicles struggled with election-driven uncertainty and low infra-spend; passenger vehicle growth was led to margin pressures from higher inventory and discounts.
In December, the last month of 2024, overall retail automobile sales however declined by 12.4 per cent, with two-wheelers (-17.6 per cent), three-wheelers (-4.5 per cent), PV (-1.9 per cent) and CV (-5.2 per cent) facing de-growth. Only tractor showed a 25.7 per cent yearly jump in sales in December. In the near term, FADA asserted that about 48 per cent of automobile dealers expect growth in January, 41.22 per cent see flat sales and 10.69 per cent predict a slowdown.
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