Indian Auto Market: Indian auto industry witnessed mixed fortunes in November 2024, with contrasting performances across vehicle segments. While two-wheelers and tractors recorded impressive gains, passenger vehicles and commercial vehicles struggled due to post-festive demand shrinkage.
Indian Auto Market: Passenger Vehicle Sales Decline by 13.72% Year-on-Year
Passenger vehicle sales witnessed a steep decline, with sales plummeting 13.72% compared to November 2023. Sales were recorded at 3,21,943 units against 4,83,159 units in October 2024, thus reflecting a sharp month-on-month fall of 33.37%.
Market experts felt that this has been attributed to several reasons, which include weak market sentiment, fewer product launches, and also the spill-over of the festive season demand into the month of October. In spite of the rural market showing interest, it had not mitigated the drop in the sales.
Two-Wheelers’ Sales Rise 15.80% y-o-y
The two-wheeler segment emerged as the industry’s top performer, recording a 15.80% year-on-year sales increase. With 26,15,953 units sold, the segment saw a robust 26.67% growth compared to October 2024.
The post-Diwali sales momentum and rural market demand played a significant role in boosting sales. However, expectations tied to the wedding season remained unmet, dampening potential sales growth.
Three-Wheeler Sales Witness Modest Growth
Three-wheeler sales saw a subdued year-on-year growth of 4.23% with 1,08,337 units sold. The overall sales, however, were down 11.81% from October 2024. The market was volatile for the segment despite steady urban and semi-urban demand.
Tractor Sales Grow by 29.88% Year-on-Year
Tractor sales was also another success area, posting a year-on-year increase of 29.88% to 80,519 units in November 2024. The month-on-month sales increase was 24.97% due to rural demand recovery and favorable agricultural conditions.
This increase notwithstanding, the year-to-date tractor sales declined by 3.29% compared to FY 2024, thereby showing a lackluster performance during the year for the tractor segment.
Commercial Vehicle Sales Declines by 6.08% Year-on-Year
Commercial vehicle sales went down by 6.08% year-on-year, which is steeper than October 2024 at 15.85%. According to market analysts, the drop was due to slower infrastructure development and reduced logistics activities.
Year-to-Date Auto Market Overview
From April to November 2024, India’s overall auto sales increased by 10.97% compared with the same period in FY 2024. The cumulative sales reached 1,79,92,631 units, driven primarily by two-wheelers, which recorded a 14.04% growth with 1,43,59,744 units sold.
Passenger vehicle sales increased by 4.19% while three-wheeler sales grew by 7.61%. Commercial vehicles and tractors declined by 0.29% and 3.29%, respectively, indicating the unevenness of market recovery.
Industry Outlook for December 2024
Looking forward, industry experts keep a watchful eye on cautiously optimistic prospects for December 2024. Year-end discounts, promotional offers, and festive campaigns can revive demand and enhance auto sales before the end of the year.
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