December automobile retail sales decline 12%
New Delhi: Automobile retail sales in December 2024 declined by 12 per cent year-on-year, totalling 17,56,419 units, according to the Federation of Automobile Dealers Associations (FADA). High inventory levels after the festive season and muted consumer sentiment contributed to the slowdown, the dealers’ body reported on Tuesday.
Two-wheeler sales dropped 18 per cent last month to 11,97,742 units, compared to 14,54,353 units in December 2023, marking the steepest decline among vehicle categories. Passenger vehicle (PV) retail sales also saw a 2 per cent dip, with 2,93,465 units sold compared to 2,99,351 units in the same period the previous year. FADA attributed the December slump to aggressive discounting by dealers to clear excess inventory, limited new model launches, and intense price competition. “Post-festive demand failed to pick up as expected, leading to subdued retails across key segments,” the association noted.
Despite the year-end slowdown, automobile retail sales for the full calendar year 2024 showed a robust 9 per cent growth, with total vehicle registrations reaching 2,61,07,679 units, up from 2,39,28,293 units in 2023.
“CY24 was marked by significant challenges, including heatwaves, elections at the central and state levels, and uneven monsoon patterns. Yet, the industry displayed remarkable resilience,” FADA President C S Vigneshwar said in a statement.
The two-wheeler segment led the recovery, growing 11 per cent year-on-year to 1,89,12,959 units in 2024, driven by improved rural demand, fresh model launches, and better supply chains. Passenger vehicles also recorded a 5 per cent growth, with sales rising to 40,73,843 units compared to 38,73,381 units in 2023.
While two-wheelers and passenger vehicles showed steady growth for the year, the commercial vehicle (CV) segment remained flat, with sales at 10,04,856 units. Reduced infrastructure spending and election-driven uncertainty weighed on the segment’s performance.
Three-wheeler registrations rose 11 per cent to 12,21,909 units, signalling a recovery in shared mobility and last-mile delivery demand. Tractor sales also grew modestly by 3 per cent to 8,94,112 units, indicating stable agricultural demand.
Looking forward, FADA remains optimistic about 2025, citing opportunities in the form of rising rural incomes, new model launches, and potential stabilisation in EV disruption in the two-wheeler market. For passenger vehicles, FADA highlighted strong consumer interest in new SUV launches and feature-rich EVs as key growth drivers. However, price-sensitive buyers and fluctuating interest rates remain areas of concern.
“Overall, FADA expects market recovery, strategic OEM support, and policy clarity to enable the automotive retail industry to navigate challenges and end CY25 on a robust note,” the statement added.with agency inputs
