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Backed robust economic growth and conducive government, the Indian automobile industry has posted a satisfactory performance with sales growing 12.5 per cent during the just-concluded financial year.

During 2023-24, total domestic sales rose from 2.12 million units to 2.38 million units, data released Society of Indian Automobile Manufacturers (SIAM) showed Friday. Cetegory wise, passenger vehicle sales rose 8.4 per cent, three wheelers 41.5 per cent, two wheelers 13.3 per cent, commercial vehicles marginally 0.6 per cent.

Passenger vehicle segment led the growth with overall sales touching almost 5-million units including 4.2 million domestic (growth of 8.4 per cent) and 0.7 million exports.

Two-wheeler segment continued the recovery path with a handsome growth of over 13 per cent in domestic sales to almost 18 million units, even though still lower than the earlier peak of 21 million units in 2018-19.

Domestic commercial vehicle industry had a marginal growth to 9.7 million units and within that, some drop was experienced in light commercial vehicles and small commercial vehicles due to degrowth in the CNG segment.

Accordig to SIAM, the growth in commercial vehicles was impacted due to migration to higher tonnage trucks which created higher payload capacity, that it asserted is not reflected in the number of units.

Coming to three wheeler industry, it is almost close to the earlier peak of 0.7 million units in 2018-19.

Moving on to exports of vehicles, overall exports remained under stress during the last financial year with sizeable drop in commercial vehicles, two-wheelers and three-wheelers, though passenger vehicles grew marginally.

However, good recovery was seen in the last quarter, especially for two-wheelers, indicating better potential for the current year, it said.

The year also demonstrated the sustainability commitments of the auto Industry as it commenced producing vehicles which are material compliant to 20 per cent Ethanol blending and witnessed growth of 90 per cent in electric passenger vehicles and 30 per cent in electric two-wheelers.

Vinod Aggarwal, President, SIAM, said, “The Industry remains optimistic as the macroeconomic outlook remains positive. Coupled with good monsoon outlook, we are expecting continued growth for the industry this year as well.”

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