Despite the challenges the industry continued to grapple with a 9% jump in vehicle sales in 2024

New Delhi| Car sales registered a 9 per cent year-on-year growth in 2024 driven by strong demand for two-wheelers and passenger vehicles amid a challenging business environment. A total of 2,61,07,679 vehicles were sold nationwide in calendar year 2024, according to data released Tuesday by the Federation of Automobile Dealers Associations (FADA). A total of 2,39,28,293 carriages were sold in 2023. FADA President C S Vigneshwar said the vehicle retail industry remained strong despite several headwinds in 2024, including scorching heat, elections at the Center and states and uneven monsoon.

Better supply, new models and strong rural demand in the two-wheeler segment boosted sales growth, the organization president said. However, financial constraints and the ever-increasing number of electric vehicles (EVs) are challenging. Apart from this, there is also a need to keep an eye on the perception of customers who are cautious about prices amid fluctuations in interest rates.

A total of 40,73,843 passenger vehicles were sold last year. This is five percent more than the 38,73,381 passenger vehicles sold in 2023. Sales of two-wheelers increased by 11 per cent year-on-year to 1,89,12,959 units. In 2023, 1,70,72,932 two-wheelers were sold.
Three-wheeler sales rose 11 percent to 12,21,909 units from 11,05,942 a year earlier. Tractor sales rose three percent to 8,94,112 units. Sales of commercial vehicles stable at 10,04,856. According to FADA data, retail sales of vehicles decreased by 12 per cent year-on-year to 17,56,419 units in December, 2024. Sales of passenger vehicles also decreased by two percent in 2024 to 2,93,465 units compared to a year earlier. Sales of two-wheelers declined by 18 per cent to 11,97,742 units, compared to 14,54,353.