Indian auto industry sees 12.5% growth in 2023-24, with EV sales surging

The Indian automobile industry has recorded a 12.5% growth in sales for the financial year, backed by a robust economy and supportive government policies. According to data released by SIAM, total domestic sales increased from 2.12 million units to 2.38 million units during 2023-24.

In terms of category-wise growth, passenger vehicle sales rose by 8.4%, three-wheelers by 41.5%, two-wheelers by 13.3%, and commercial vehicles saw a marginal increase of 0.6%. The passenger vehicle segment led the growth, with total sales reaching almost 5 million units, including 4.2 million domestic sales and 0.7 million exports.

The two-wheeler segment showed a significant recovery with a growth of over 13% in domestic sales, totaling nearly 18 million units. Commercial vehicle sales reached 9.7 million units, with a slight decline in light and small commercial vehicles due to a decrease in the CNG segment.

Despite challenges in exports, the last quarter saw a promising recovery, particularly in two-wheelers. Additionally, the industry demonstrated its commitment to sustainability by producing vehicles compliant with 20% Ethanol blending and experiencing substantial growth in electric passenger vehicles and two-wheelers.

Vinod Aggarwal, President of SIAM, expressed optimism for the industry’s continued growth, citing positive macroeconomic indicators and a promising outlook for the current year. With favorable conditions and evolving consumer preferences, the Indian auto sector is poised for further advancement in the coming months.