The Indian automotive industry has experienced a moderately positive start to the financial year, with varying degrees of growth across different segments in April 2024. The total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 2,358,041 units. Despite challenges, this represents a noteworthy volume, showcasing the industry's capability to meet domestic and export demands.
Passenger Vehicles: Sales slightly increased to 335,629 units in April 2024 from 331,278 units in April 2023, marking a marginal growth of 1.3%. This subdued growth suggests a stabilisation in the passenger vehicle market, which has been buoyed by a series of new launches and sustained demand in the premium segments.
Three-Wheelers: This segment saw a more robust growth of 14.5%, with sales rising from 42,885 units in April 2023 to 49,116 units in April 2024. The sales of goods carriers notably surged by 64.3%, indicating a strong recovery and growth in commercial activities. However, the electric rickshaw sub-segment witnessed a significant decline, dropping by 49.5%, which might signal market saturation or shifts towards more sustainable alternatives.
Two-Wheelers: Showing a significant rebound, two-wheeler sales soared by 30.8%, with a jump from 1,338,588 units in April 2023 to 1,751,393 units in April 2024. This growth was driven largely by an increase in motorcycle sales, which grew by 34.4%, and scooters, which saw a 25.2% rise. This indicates a strong consumer preference for personal mobility solutions post-pandemic.
Quadricycles: The quadricycle segment, however, faced a decline of 68.9%, a possible indicator of niche market challenges or regulatory impacts affecting this category.
Commenting on the industry's performance, Vinod Aggarwal, President of SIAM, mentioned that the industry's growth was supported by positive consumer sentiments and seasonal festivities. He is optimistic of the potential impact of favourable monsoons and stable government policies on the sector's future growth.
Rajesh Menon, Director General of SIAM, pointed out that while passenger vehicles continued to show high sales volume, the growth rate was modest. However, the significant surge in two-wheeler sales could be attributed to enhanced consumer confidence and a strong rural demand uplifted by good agricultural outputs.
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