Auto Industry Rides Festival-Driven Demand in October with 0.9% Growth in Passenger Vehicles and 14.2% in Two-wheelers The passenger vehicle market experienced its highest-ever sales for the month of October, reaching 3,93,238 units, up from 3,89,714 units in October 2023, a 0.9 per cent increase.

The Indian automobile industry received a significant boost in October 2024, as both Dussehra and Diwali fell in the same month. This double dose of festive fervor drove consumer demand, leading to record-breaking sales figures across certain segments of the auto market. The latest report from the Society of Indian Automobile Manufacturers (SIAM) reveals notable growth in passenger vehicle and two-wheeler sales, although the three-wheeler segment showed a minor decline.

The passenger vehicle market experienced its highest-ever sales for the month of October, reaching 3,93,238 units, up from 3,89,714 units in October 2023, a 0.9 per cent increase. The slight growth, achieved despite the high base of last October, underscores the resilience of the passenger vehicle segment amid increasing competition and market saturation.

Two-wheelers

The two-wheeler segment shone brightly this October, posting its highest-ever sales for the month with 21,64,276 units sold—an impressive 14.2 per cent increase from the 18,95,799 units sold in October 2023. Both scooters and motorcycles contributed significantly to this growth. Scooter sales rose by 22.3 per cent, from 5,89,802 units in October 2023 to 7,21,200 units in October 2024, while motorcycle sales climbed by 11.0 per cent, reaching 13,90,696 units from last year's 12,52,835 units.

Rajesh Menon, director general of SIAM said, "This high growth was also reflected in the Vahan vehicle registration data, wherein more than 30 per cent growth in registration was witnessed for both Passenger Vehicles and Two-wheelers in October 2024, compared to October 2023." The festive season's effect, combined with pent-up demand from rural and semi-urban areas, seems to have spurred two-wheeler purchases, particularly as motorcycles remain a preferred choice for personal and family mobility in these regions. Menon noted that the surge in two-wheeler sales was a positive sign for the industry.

Three-wheelers

While the passenger and two-wheeler segments recorded strong growth, the three-wheeler segment faced a slight setback. Total sales for three-wheelers fell by 0.7 per cent, from 77,344 units in October 2023 to 76,770 units in October 2024. Passenger carriers within this category managed a modest 2.0 per cent growth, but other segments like goods carriers and e-rickshaws saw declines of 1.0 per cent and 49.4 per cent, respectively.

Within the three-wheeler category, electric vehicles saw a mixed response. E-cart sales more than doubled, jumping from 268 units in October 2023 to 615 units in October 2024, a striking 129.5 per cent increase. On the other hand, e-rickshaw sales fell sharply by 49.4 per cent, from 4,124 units to 2,085 units year-over-year (YoY). This data reflects an evolving but uneven adoption of electric mobility solutions within the three-wheeler segment.

In the months ahead, it will be essential to monitor how consumer trends evolve, particularly in response to economic changes, fuel prices, and advancements in electric vehicle technology.