Though the growth rate moderated in April, it was the fourth consecutive month when sales volume in the local market set a new record, as per data from industry body 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 sentiments 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 vehicle 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.A high base due to the strong growth in the last two years also weighed on the year-on-year comparison, resulting in the tepid pace of growth in April.