Passenger vehicle (PV) and two-wheeler retail sales in India surged in FY24 compared to FY23, despite challenges like price hikes and inflation. PV sales increased by 8.45% to 39,48,143 units, with SUVs contributing 50% of total sales. In contrast, PV wholesale numbers declined by 6.17% in March 2024.
According to the Federation of Automobile Dealers Associations (FADA), the Indian PV market witnessed a retail sales slump of 2.35% in March 2024 compared to February 2024. This downturn was attributed to heavy discounting and selective financing, while the overall growth in FY24 was driven by improved vehicle availability and high demand for SUVs.
FADA President Manish Raj Singhania called FY24 a milestone year for the PV segment, citing factors like improved vehicle availability, new model launches, and strong demand for SUVs as contributors to the sales surge. He emphasized the role of strategic marketing efforts and enhanced supply dynamics in achieving this success.
On the other hand, two-wheeler sales in India saw a 9.30% growth in FY24, reaching 1,75,17,173 units. FADA highlighted the strategic evolution in the segment, especially in premium and electric vehicles, with electric two-wheeler market share reaching 9.12% for the first time due to the increased sales before the expiration of the FAME 2 subsidy on March 31.
FADA attributed the growth in two-wheeler retail sales to factors like enhanced model availability, new product introductions, and positive market sentiment. The organization acknowledged the role of strategic premium segment launches and EV growth in driving the overall sales growth in FY24, overcoming challenges like supply constraints and heightened competition.
