Indian Automobile Sector Sees Mixed Performance in September 2024: Report The SIAM report provides a mixed outlook for India's auto sector. Utility vehicles and two-wheelers are driving domestic growth, while export markets show healthy demand.
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The Indian automobile industry's September 2024 numbers are in, painting a picture of mixed results. While passenger vehicle sales continued to face headwinds, other segments, such as commercial vehicles and electric vehicles, showed promising signs of growth, indicating a shifting landscape in the sector. The society of Indian automobile manufacturers (SIAM) has released the latest data for the Indian automobile sector, offering insights into the production, domestic sales and exports for September 2024. The report presents a nuanced picture, with some segments experiencing robust growth, while others witnessed a slowdown.
The passenger vehicles segment saw a moderate decline in September 2024. The total passenger vehicle sales fell slightly by 3.4 per cent, totaling 3,63,078 units compared to 3,75,967 units in the same period last year. To break it down, passenger cars saw a significant drop, with a decline of 17.1 per cent from 1,51,215 units in September 2023 to 1,25,409 units in September 2024. Utility vehicles (UVs), on the other hand, reported a 6.7 per cent growth, reflecting a rising preference for larger vehicles and SUVs. UV sales increased from 2,11,723 units last year to 2,25,942 units this year. Vans, however, faced a 10 per cent drop in sales, from 13,029 units in 2023 to 11,727 units in 2024.
Positive Growth Despite Declining Export
The three-wheeler segment performed well, showing a 3.9 per cent growth, with 1,08,245 units sold in September 2024, up from 1,04,149 units last year. Passenger carriers in this segment grew by 4.4 per cent, while Goods carriers saw a 6.7 per cent rise in sales. However, E-rickshaw sales continued to face a significant decline, dropping by 18.8 per cent year-on-year (YoY). Exports also took a hit, falling by 10.6 per cent due to decreased demand.
A Strong Rebound
The two-wheeler market, a backbone of the Indian auto industry, recorded an impressive 12.9 per cent growth in September 2024. Motorcycles, the largest contributor, grew by 14.2 per cent, with sales surging from 13,50,649 units to 15,42,616 units year-on-year (YoY). Scooters also reported a 10.3 per cent rise, totaling 7,12,192 units. Interestingly, Mopeds saw a notable 10.1 per cent increase, further highlighting the popularity of cost-effective transportation options. Exports in the two-wheeler category jumped by 23.2 per cent, reinforcing the growing demand for Indian two-wheelers in international markets.
Challenges for Electric Vehicles (EVs) and New Mobility
Electric mobility, especially in the three-wheeler category, is encountering significant hurdles. For instance, e-rickshaw sales dropped by a notable 18.8 per cent, and exports halved by 49.2 per cent. Despite the Indian government's push for electrification, these figures suggest challenges in affordability and infrastructure that continue to impact growth in this sector.
The SIAM report provides a mixed outlook for India's auto sector. Utility vehicles and two-wheelers are driving domestic growth, while export markets show healthy demand. However, the decline in passenger car sales and the underperformance of certain electric vehicle segments reflect ongoing challenges.
As the sector adapts to evolving consumer preferences and global demand, industry players will need to focus on innovation, cost optimization and sustainability to navigate these headwinds and capitalize on emerging opportunities.
