India has emerged as the world’s third-largest car market in terms of volumes, with passenger vehicle wholesales crossing the 4 million mark in the financial year 2023-24. This growth of 8.7% year-on-year to 42.3 lakh units in FY24 compared to 38.9 lakh units in the previous fiscal has solidified India’s position behind only the U.S. and China in terms of car sales.
Maruti Suzuki, India’s largest carmaker, reported its highest-ever sales in the year ended March 31, 2024, with a total of 17,93,644 units sold. The company achieved the 2 million mark including exports and sales to other OEMs, showcasing its dominance in the Indian market.
The surge in car sales was largely driven by the robust demand for sport utility vehicles (SUVs), which contributed 50.4% to total passenger vehicle sales in FY24. This segment saw a remarkable 28% year-on-year growth, while sales of hatchbacks and sedans declined by 12% and 6% respectively.
Tata Motors also reported a 6% rise in domestic passenger vehicle sales at 5,70,955 units in FY24, with a 14% increase in sales in March alone. The company’s Managing Director, Shailesh Chandra, projects that the overall passenger vehicle sales in India will set a record in FY24, exceeding 4.2 million units, driven by the rising popularity of emission-friendly powertrains.
With the demand for safe and green vehicles on the rise, the Indian car market is expected to see continued growth in the coming months. Companies like Mahindra, Honda, MG Motor, and Toyota Kirloskar Motor have also reported strong sales figures, indicating a positive outlook for the industry in the near future.