Robust Two-Wheeler and Record Passenger Vehicle Sales Drive October Auto Surge

October Auto Sales Overview Total two-wheeler sales in India surged by an impressive 14.2% in October 2024, reaching 21.64 lakh units compared to 18.96 lakh units in October 2023, according to data from the Society of Indian Automobile Manufacturers (SIAM). This marked a substantial increase driven by strong consumer demand during the festive season.

Passenger Vehicle Record Sales Passenger vehicle (PV) sales, encompassing cars and SUVs, climbed to their highest-ever monthly figure of 3.93 lakh units in October 2024. This represented a modest 0.9% growth over the high base of 3.9 lakh units sold in October 2023. Rajesh Menon, Director General of SIAM, noted that the convergence of major festivals like Dussehra and Diwali in October contributed significantly to this boost.

“October 2024 saw two major festivals, Dussehra and Diwali, both occurring in the same month, which traditionally drive higher consumer demand, providing a significant boost to the auto industry’s performance,” Menon stated.

Vahan Registration Data Highlights Supporting this trend, Vahan vehicle registration data showed a growth of over 30% in registrations for both passenger vehicles and two-wheelers in October 2024 compared to October 2023, further underlining the strong market performance.

Three-Wheeler Segment Conversely, the three-wheeler segment saw a slight decline of 0.7% in sales, with 0.77 lakh units sold in October 2024 compared to the previous year. However, registration data indicated an 11% increase year-on-year, suggesting regional variances in demand.

Drivers of Growth: Rural Influence Market analysts attribute the two-wheeler sales surge to increased rural incomes, spurred by a favorable monsoon season that improved crop yields and elevated farmers’ earnings. The government's increase in minimum support prices for various crops further boosted rural purchasing power, translating into higher spending on consumer goods.

This trend was mirrored in India’s fast-moving consumer goods (FMCG) sector, where rural consumption outpaced urban areas for the third consecutive quarter. A NielsenIQ survey reported that FMCG sales grew by 5.7% in value and 4.1% in volume during the July-September 2024 quarter, driven primarily by rural demand.

Outlook The strong October sales figures highlight the resilience and growth potential of the Indian auto sector, bolstered by festive buying and enhanced rural economic activity. While passenger vehicles and two-wheelers experienced significant growth, the slight dip in three-wheeler sales suggests targeted challenges that could be addressed with strategic measures.