Indian Auto Industry Grows by 10% in October 2024, Driven by Festive Demand: SIAM

In October 2024, India’s automotive industry experienced mixed results, showing resilience in some segments while facing challenges in others. According to data from the Society of Indian Automobile Manufacturers (SIAM), total production across all vehicle types rose by 10 per cent year-on-year, reaching 2,882,996 units. The festive season, marked by Dussehra and Diwali, boosted consumer demand, especially in the passenger vehicle and two-wheeler segments, but certain areas within the market revealed contrasting trends.

The passenger vehicle segment recorded slight growth, selling 393,238 units, an increase of 0.9 per cent compared to October 2023. This rise was mainly propelled by demand for utility vehicles (UVs), which achieved a 6.3 per cent rise in production and a notable 13.9 per cent increase in domestic sales, totaling 225,934 units. Exports of utility vehicles soared by 61.7 per cent. 

Conversely, the production and sales of traditional passenger cars declined. Passenger car production fell by 18 per cent to 128,097 units, with domestic sales decreasing by 17.3 per cent. This decline points to a shift in consumer preference towards larger, more versatile utility vehicles and SUVs, which are increasingly seen as practical options for Indian road conditions.

The two-wheeler segment saw a substantial increase in sales, setting an October record with 2,164,276 units sold, a 14.2 per cent rise over October 2023. Scooters led the way, with domestic sales increasing by 22.3 per cent to 721,200 units. Motorcycles also performed well, with an 11 per cent rise in domestic sales, totaling 1,390,696 units. Exports of two-wheelers rose by 25.4 per cent, underscoring the sector's robust international demand. 

In contrast, the three-wheeler market experienced a minor decline in domestic sales, which fell by 0.7 per cent to 76,770 units. Within this segment, passenger carriers recorded a slight growth of 2 per cent, but goods carriers faced a 1 per cent drop. Notably, e-rickshaw sales plummeted by 49.4 per cent, potentially due to market saturation or limited demand in certain areas. However, the e-cart subcategory saw a 129.5 per cent increase, suggesting growing interest in electric solutions for specific commercial applications.