On the backdrop of a robust economic growth of 7.6 per cent the Indian automobile industry posted a satisfactory growth of 12.5 per cent during financial year 2023- 24, with passenger vehicle segment leading the growth with overall sales touching almost 5 million units even as the industry remains optimistic amidst positive macroeconomic outlook.
The PV dispatches growth includes a growth of 8.4 per cent in the India market taking the sales to 4.2 million and 0.7 million exports, the Society of Indian Automobile Manufacturers (SIAM) said on Friday, releasing the auto industry sales performance of the last month, the fourth quarter ended March and financial year 2023-24.
Passenger Vehicle registered growth of 12 per cent in Q4. Nomura Ratings in its outlook for the sector in FY25F, expects rebalancing of growth where high-growth segments like PV/MHCV will see a slowdown while mass segments like 2Ws will see some recovery. “The PV industry inventory levels remain elevated, and we expect growth to moderate to 4 per cent yoy in FY25 from 8 per cent yoy in FY24. In 2Ws, rural recovery should support demand and drive 10 per cent growth in FY25,” say Nomura auto analysts Kapil Singh and Siddhartha Bera.
The industry wrapped up FY24 with domestic sales of PVs at 42,18,746 units, sales of CVs at 9,67,878 units, three-wheelers at 6,91,749 units and two-wheeler at 1,79,74,365 units. The total production of passenger vehicles, CV, three wheelers, two wheelers and quadricycle in FY24 was 2,84,34,742 units. In FY24, 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 FY19.
Domestic commercial vehicle industry had a marginal growth to 9.7 million units. “All in all, it has been a satisfactory performance for the Indian automobile industry,” said Vinod Aggarwal, President, SIAM who marks FY2024 as the year which also demonstrated the sustainability commitments of the auto industry as it commenced producing vehicles which are material compliant to 20 per cent ethanol and witnessed growth of 90 per cent in electric PVs and 30 per cent in electric 2W. “Coupled with good monsoon outlook, we are expecting continued growth for the industry this year as well,” says Aggarwal.
In the month of March 2024, domestic sales of PVs were 3,68,086 units, sales of three-wheeler sales were 56,723 units and sales of two-wheeler were 14,87,579 units. In March 2024, the total production of passenger vehicles, three wheelers, two wheelers and quadricycle was 23,25,959 units. In the January-March (Q4) quarter of FY2024, the performance in terms of domestic sales continued to be robust across categories.
The domestic sales of PVs were 11,35,501 units in the quarter under review, sales of CVs were 2,68,294 units, three-wheeler sales were 1,64,844 units and two-wheeler sales were 45,03,523 units. The total production of PVs, CVs, three wheelers, two wheelers and quadricycle in Q4 was 73,94,417 units.
Rajesh Menon, Director General, SIAM informed that 2 wheelers posted sales of 4.5 mn units with a significant growth of 25 per cent compared to Q4 of FY 2022-23 and PVs registered growth of 12 per cent and posted sales of more than 1.1 mn units. Three wheelers posted sales of 1.65 lakh units with a growth of 7 per cent, CVs registered degrowth of (-) 4 per cent by posting sales of more than 2.68 lakh units.