A high base due to the strong growth in the last two years weighed on the year-on-year comparison, resulting in the tepid pace of growth in April.
Though the growth rate moderated in April, it was the fourth consecutive month in CY24 when sales volume in the local market set a new record, as per data from Society of Indian Automobile Manufacturers (SIAM).
Two-wheeler sales posted strong growth, increasing 30.8% from a year earlier to 1,751,393 units. Three-wheeler sales rose 14.5% to 49,116 units.
“Year 2024-25 has started on a reasonably good note for the auto industry, as all the segments have posted growth in April 2024 compared to April 2023, driven by positive consumer sentiment and festivities in this month,” SIAM president Vinod Aggarwal said.
Automakers are optimistic of the demand momentum sustaining going ahead, as Aggarwal cited expectations of above-normal monsoon rainfall, policy continuity after elections and the government’s push on manufacturing and infrastructure as enabling factors.Automakers in India reported bumper sales for two straight years on the back of pent-up demand after the pandemic. Sales of passenger vehicles grew 8.4% to a record high of 4.22 million units in the financial year concluded March 31, 2024. Sales had grown 27% the previous financial year.Rajesh Menon, director general, SIAM said, “Passenger vehicles continue the highest-ever monthly sales trend, with 3.36 lakh units, though with a marginal growth of 1.3%, in April 2024, as compared to April 2023. Continuing with the trends of Q4 of 2023-24, two-wheelers reported significant growth of 30.8% in April 2024, compared to April 2023, posting sales of about 17.5 lakh units while the three-wheeler segment also reported sales of about 0.49 lakh units, with a growth of 14.5% in April 2024, compared to April 2023.”