Automotive Retail Sales Rev Up with Robust Growth

Automobile retail sales increased by 9% in 2024, driven by strong demand for two-wheelers and passenger vehicles, despite a challenging business climate. FADA reports growth in various segments, while commercial vehicles remained flat. Positive market outlook is anticipated for the automotive retail industry.

In 2024, automobile retail sales surged by 9%, fueled by a robust demand for two-wheelers and passenger vehicles despite challenging business conditions, according to the Federation of Automobile Dealers Associations (FADA). Vehicle registrations totaled 2,61,07,679 units compared to 2,39,28,293 units in the previous year.

The growth was sustained in the two-wheeler segment due to improved supply, new models, and strong rural demand, although facing challenges from finance constraints and rising electric vehicle competition. The passenger vehicle sector also saw benefits from network expansion and product launches despite margin pressures due to high inventory levels.

While the passenger vehicle sector flourished, commercial vehicles experienced subdued performance amidst election-related uncertainties and reduced infrastructure spending. Looking ahead, FADA remains optimistic about further growth driven by rising rural incomes, SUV launches, and government support.

(With inputs from agencies.)