Auto Sector Hits New Heights: January Witnesses Record Passenger Vehicle Sales, Two Wheelers Surge By 26 Per Cent

Passenger vehicle manufacturers reported record-breaking sales in January, with a 14 per cent increase from the previous year to 393,074 units, as dealers replenished inventories depleted during year-end sales promotions as per a report by The Economic Times.

According to data from the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales had reached 346,080 units in January 2023 and had previously peaked at 391,811 units in October 2023.

Automakers in India typically report wholesale dispatches from factories to dealerships, rather than retail sales to customers.

The strong industry volumes were driven by Maruti Suzuki, Hyundai Motor India, and Tata Motors, all of which posted robust sales last month.

Vinod Aggarwal, President of SIAM, stated, “Passenger vehicle sales have remained strong due to positive consumer sentiment, while the two-wheeler segment also saw good growth in January, with the rural market continuing to recover.”

Two-wheeler sales totaled 1,495,183 units last month, a 26 per cent increase from 1,184,376 units in the same period last fiscal year. Three-wheeler sales increased by 9.5 per cent to 53,537 units in January.

While the three-wheeler segment also performed well last month, the commercial vehicle segment did not grow in January 2024.

Aggarwal added, “Commercial vehicles are likely to see good demand in the next two months of this fiscal year.”

Aggarwal noted that the government's focus on mobility in Budget 2024, including strengthening the electric vehicle ecosystem, especially charging infrastructure and public transport, should help sustain overall growth momentum for the auto sector.

Rajesh Menon, Director General of SIAM, commented on the performance in January 2024, confirming, “Passenger vehicles again saw their highest-ever sales in January, with a growth of 14 per cent compared to the previous year."

He added, "Three-wheeler sales grew by 9 per cent in January 2024, while two-wheelers posted a strong growth of 26 per cent compared to January 2023. Both passenger vehicles and three-wheelers continue to achieve their highest-ever sales in FY 24, for the period April to January.”