SUVs Shows Record-High Growth in FY24, MPVs and Hatchbacks follow up

Fueled by increasing popularity, sports utility vehicles (SUVs) led to a historic high in passenger vehicle sales in India during fiscal year 2024 (FY24). The combined dispatch of SUVs and other passenger vehicles reached a record 42.3 lakh units, a 9% jump from 38.9 lakh units in the previous fiscal year (FY23). SUVs accounted for 50.4% of total passenger vehicle dispatches in FY24, up from 43% in FY23, signifying their growing dominance in the market.

In the fiscal year 2024, the total number of vehicles sent from the manufacturer to dealers increased by 9% to 42.3 lakh units, up from 38.9 lakh units in fiscal year 2023. In the fiscal year 2024, the proportion of SUVs in total passenger vehicle deliveries increased to 50.4% from 43% in the fiscal year 2023.

“This is the first time passenger vehicle sales have crossed the 40 lakh mark in India”, said Maruti Suzuki India (MSI) Executive Committee Member Shashank Srivastava.

Mr. Srivastava reported that the SUV category increased by 28% compared to the previous year, hatchbacks saw a growth of 12%, sedans increased by 6%, MPVs grew by 19%, and vans experienced a 6.5% growth in the fiscal year 2024. He mentioned that the sector anticipates achieving sales growth in the single digits for the ongoing fiscal year, citing the significant impact of the high base effect from the previous fiscal year.

In the fiscal year 2024, MSI achieved its highest annual domestic sales with 1,793,644 units and set a new record for exports with 283,067 units.

During the same period, Hyundai Motor India (HMI) achieved its highest ever sales figure, with a total of 7,77,876 units sold in FY24, representing an 8% increase from 7,20,565 units in FY23.

Rising Rural Demand

According to HMI COO Tarun Garg, the industry has seen faster growth in rural areas compared to urban regions, with sport utility vehicles (SUVs) leading the way as the fastest-growing segment.

In FY24, Toyota Kirloskar Motor (TKM) achieved its highest-ever sales performance, with a notable 48% increase in wholesales, totaling 2,63,512 units, surpassing the 1,77,683 units sold in fiscal year 23.

Mahindra & Mahindra saw a 28% rise in the number of passenger vehicles sold in bulk, reaching 459,877 units compared to 359,253 units in the previous fiscal year 2023.

Tata Motors reported a 6% increase in passenger vehicle wholesales, with 5,73,495 units sold in FY23 compared to 5,41,087 units in the previous fiscal year.

Fuelled by a surge in demand for sports utility vehicles, passenger vehicle sales in India reached an all-time high in FY24, with over 42 lakh units sold. This represents a 9% increase from the 38.9 lakh units sold in FY23. Notably, SUVs accounted for 50.4% of all passenger vehicle dispatches in FY24, up from 43% in FY23.

“In FY24, the company’s passenger vehicles (including electric vehicles), posted its third consecutive year of highest-ever sales with wholesales of 5,73,495 units and retail sales growing around 10% versus FY23,” Tata Motors Passenger Vehicles MD Shailesh Chandra said. Moving ahead, the company anticipates sustained demand for passenger vehicles, yet forecasts a modest increase in sales, in line with the industry-wide trend of single-digit growth, owing to the high base effect of the previous fiscal year.

Two-Wheelers

TVS Motor Company achieved a record high of 41.91 lakh units in sales for two-wheelers in the financial year 2024, marking a 14% increase from the 36.82 lakh units sold in the previous financial year.

In the FY24, Suzuki Motorcycle India achieved its all-time highest sales with 1,133,902 units sold, marking a 21% increase from the previous fiscal year where they sold 938,371 units.

Royal Enfield’s domestic sales surged by 14% year-over-year, selling 8,34,795 units in the previous fiscal year compared to 7,34,840 units in FY23.