Auto industry ends 2024 in top gear with record-breaking car sales

Car sales increased for the third consecutive month in December, ending the 2024 calendar year with a record 4.3 million units. According to industry estimates, wholesale or factory-to-dealer dispatches rose 10% to 12% to 320,000 to 325,000 vehicles as manufacturers restocked their inventory. Sales at dealers after strong retail sales during the Christmas season. Indian automakers primarily report wholesale shipments and do not report retail sales to customers.

ET first reported on Dec. 23 that auto sales are starting to show signs of recovery after a slump in the first half of this fiscal year and will end calendar 2024 at an all-time high.

The industry’s performance in December was buoyed by market leader Maruti Suzuki, with wholesale sales increasing 24% year-on-year to 130,117 units. The company also reported record retail sales of 2,52,693 units last month, reducing inventory across its network to nine days’ worth, Partho Banerjee, senior executive officer (marketing and sales), told ET. told.

“Also, last year (CY2024) we recorded our highest ever annual sales of 1.79 million units, breaking the previous record of 1.75 million units set six years ago in 2018.In addition to SUVs, we also sell hatchbacks. Our new products in the and sedan segments have been well received and contributed to the overall category sales growth this year,” Banerjee said. He said Maruti’s newly launched entry sedan DZire recorded 25,000 bookings in December.

Auto sales slowed in the first half of this year, mainly due to the general and state elections and abnormal weather, but rose by about 1% in October and about 4% in November. Passenger car sales rose 3% in the first quarter. South Korean automaker Hyundai reported sales in December fell 1.3% to 42,208 units. However, Hyundai’s sales increased to a record 605,433 units in 2024. Tarun Garg, Managing Director and Chief Operating Officer, Hyundai Motor India, said, “Despite the strong headwinds faced by the industry as a whole, HMIL has managed to maintain its sales momentum in 2024.” said. The company has seen strong demand for SUVs, contributing 67.6% to overall sales last year. Tata Motors sold 44,230 units in December, surpassing Hyundai, and ended the calendar year with 565,000 units. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said: -Friendly powertrain. In the third quarter of 2025, the industry made a strong comeback due to increased retail activity during the Christmas season…Looking to the future, we remain optimistic about the outlook for the solar power industry. ”

Mahindra recorded sales of 41,424 units last month, an increase of 18%. At JSW MG Motor India, sales rose 55% to 7,516 units in December.

Toyota, which operates in a joint venture with the Kirloskar Group, reported a 16.5% increase in sales to 24,887 units last month. The company’s annual sales last year reached a record high of approximately 300,000 units.

Sabari Manohar, Vice President, Sales, Service and Used Cars Business, Toyota Kirloskar Motor “I think so,” he said. The major contributor segment grew 20% year over year. We are also seeing changes in consumer preferences towards sustainability, reliability index value propositions and enhanced vehicles. Improved safety and resale value are driving our sales. ”

Demand remains weak in the commercial vehicle segment, with market leader Tata Motors reporting a 1% decline in sales to 32,369 units in December. However, Tata Motors executive director Girish Wagh said commercial vehicle sales were improving quarter-on-quarter. Additionally, the company’s December sales increased 24% from the previous quarter.

“Buoyed by the revival of construction and mining activities post-monsoon, as well as Christmas season demand, the HCV sector saw a 9% year-on-year decline in sales in Q3FY25 due to limited growth. “We recorded strong quarter-over-quarter (QoQ) sales growth across the end-use segment,” Wag said.

He said, “The ILMCV (medium, light, medium-duty commercial vehicle) segment recorded approximately 3% year-on-year growth driven by strong demand, and the MCV segment continues its solid growth trajectory, with “We recorded a 40% year-on-year increase during the quarter.”

Looking ahead, Tata Motors expects demand to improve in most sectors of the CV industry in the March quarter. “The key aspects to watch in 2025 will be the government’s focus on infrastructure spending and growth in end-use sectors, which bodes well for the commercial vehicle industry,” Wagh said.

In the domestic CV market, Eicher brand trucks and buses recorded sales of 7,545 units in December 2024, compared to 7,468 units in December 2023. Volvo Trucks and Volvo Buses recorded sales of 289 units in December 2024, compared to 237 units in December 2023. This represents a growth of 21.9%.

Source: Company
(Domestic sales only)