NEW DELHI: Passenger vehicle (PV) sales growth fell to a multi-year low in Calendar Year 2024 as the industry grappled with significant challenges in maintaining the post-pandemic growth momentum.
Preliminary data indicates that PV sales (factory dispatches to dealer showrooms) grew by just 4.5% - 4.7% to slightly over 4.3 million units in CY2024. This marks the slowest growth in four years, compared to 8.3% in 2023, 23% in 2022, and a staggering 30% in 2021.
While industry experts believe this deceleration is partly due to a high base effect, the challenges facing the sector cannot be ignored. Demand for affordable cars—those priced under Rs 10 lakh — has been on a steady decline for several quarters. This trend reflects concerns over shrinking purchasing power among middle-income consumers, particularly in urban areas.
India’s largest carmaker Maruti Suzuki sales were also all-time high at 17,90,877 vehicles in CY24, up by just 2.7% year-on-year. The carmaker recorded its highest ever wholesales after 6 years (CY2018 was 17,51,919 units (previous high), CY2023 it was 17,42,680 units). Partho Banerjee, Senior Executive Director of Maruti Suzuki said that SUV contribution in total PV sales from Jan to Nov was around 54.7 % so it should be around this number in full CY24.
Hyundai Motor India (HMIL) also recorded its highest-ever yearly domestic sales of 605,433 units in CY 2024. However, it is a growth of 0.6% when compared to CY2023 sales.
“HMIL has managed to sustain sales momentum in 2024, despite strong headwinds faced by the industry at large,” said Tarun Garg, Chief Operating Officer at HMIL.
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles said that the PV industry posted moderate growth in CY24 and is expected to touch a sales volume of 4.3 million units, with strong growth in the SUV segment and sustained traction for emission-friendly powertrains. For Tata Motors, CY24 was the fourth consecutive year of highest-ever annual sales with 565,000 units sold. However, the growth rate is just about 2.7% given the automaker sold nearly 551,000 PVs in CY23.
“Looking ahead, we remain optimistic about the outlook for the PV industry,” added Chandra.
On the back of a strong portfolio of utility vehicles, Mahindra & Mahindra outperformed the industry growth rate in 2024. Buoyed by back-to-back successful launches, Mahindra’s PV sales grew by 21% to 402,360 units between April and December of CY24. The carmaker is now eyeing for the second spot in the PV market.
Toyota achieved sales of 326,329 units in CY24, reflecting an impressive 40% growth over the 233,346 units sold in 2023. Of the total sales in 2024, 300,159 units were attributed to domestic sales, while 26,232 units came from exports. Toyota’s sharp surge can also be attributed to the strong demand for rebadged Suzuki cars it sells.
Kia India delivered 255,038 vehicles in 2024. This marks a 6% increase over the 240,919 units delivered in 2023. The company has set a target to sell 3 lakh cars in 2025.