The Indian auto industry continues its strong growth trajectory. Check details
The Indian automotive sector continues to surge ahead, with both domestic sales and exports showing robust growth, according to a report by the Society of Indian Automobile Manufacturers (SIAM).
In February 2024, the industry recorded domestic sales of 18,94,900 units across segments, marking a significant 28.7 per cent year-on-year (YoY) increase. Exports also saw a substantial rise, with 4,08,422 units shipped, reflecting a 36.17 per cent YoY increase.
The passenger vehicle (PV) segment witnessed sales of 3,70,786 units, a 10.75 per cent increase compared to the same month last year. This sets a new record high for the PV segment, continuing its trend of achieving ‘highest ever’ sales. Exports of PVs also grew by 20.4 per cent to reach 54,043 units.
Earlier in the month, FADA reported that the passenger vehicle segment achieved a new sales record for the month of february, in the last month, with 330,107 units sold, marking a 12.3 per cent increase from the same month last year.
( FADA suggests tough time ahead for passenger car sales. Here’s why)
Rajesh Menon, Director General of SIAM, highlighted the achievement, stating, “Passenger Vehicles again reported its highest ever sales of February posting sales of 3.7 Lakh units with a growth of 10.8 per cent, compared to February 2023.”
On the two wheeler side, the growth was substantial too. In terms of domestic retails, the two wheeler segment saw a YoY increase of 34.6 per cent to 15,20,761 units while the exports were up by 39.5 per cent to 3,28,082 units.
Contradictory image
Post the COVID situation, the Indian auto industry has seen a significant recovery with the industry growing by each passing month. Despite the positive growth, there are contrasting views within the industry regarding the future outlook.
While SIAM remains optimistic, citing the positive impact of events like the Bharat Mobility Global Expo 2024, FADA expresses some scepticism.
Vinod Aggarwal, President, SIAM, stated that the Bharat Mobility Global Expo 2024 held in February 2024, graced by the Hon’ble Prime Minister, has created a strong positive sentiment for the consumers and therefore the Industry expects the growth momentum to continue.
Manish Raj Singhania, President of FADA, on the other hand highlighted concerns about persistently high inventory levels in the PV sector, stressing the need for OEMs to adjust production to alleviate the financial burden on dealers.
However, there is optimism for the two-wheeler segment, with strong signals from the rural sector and increased demand for premium and entry-level segments expected to boost the market.
