Car Sales Growth Slows to Multi-Year Low in CY2024

NEW DELHI: Passenger vehicle (PV) sales growth fell to a multi-year low in Calendar Year 2024 as the industry grappled with significant challenges in maintaining the post-pandemic growth momentum.

Preliminary data indicates that PV sales (factory dispatches to dealer showrooms) grew by just 4.5% – 4.7% to slightly over 4.3 million units in CY2024. This marks the slowest growth in four years, compared to 8.3% in 2023, 23% in 2022, and a staggering 30% in 2021.

While industry experts believe this deceleration is partly due to a high base effect, the challenges facing the sector cannot be ignored. Demand for affordable cars—those priced under Rs 10 lakh — has been on a steady decline for several quarters. This trend reflects concerns over shrinking purchasing power among middle-income consumers, particularly in urban areas.

India’s largest carmaker Maruti Suzuki sales were also all-time high at 17,90,877 vehicles in CY24, up by just 2.7% year-on-year. The carmaker recorded its highest ever wholesales after 6 years (CY2018 was 17,51,919 units (previous high), CY2023 it was 17,42,680 units). Partho Banerjee, Senior Executive Director of Maruti Suzuki said that SUV contribution in total PV sales from Jan to Nov was around 54.7 % so it should be around this number in full CY24.