India’s automobile sales surged by a robust 11.6 per cent in 2024 to scale the highest-ever mark of 2.5 crore units compared to the corresponding figure of 2.3 crore units in the previous year, according to wholesale data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.

With this, India remained the world’s third largest car market last year.

"Positive consumer sentiments and the country's macroeconomic stability helped in propelling reasonable growth for the automobile sector across vehicle segments," said SIAM president Shailesh Chandra.

The growth has been primarily driven by the two-wheeler segment which grew by 14.5 per cent in 2024 as compared to previous year, posting sales of 1.95 crore units. In addition, passenger vehicles and three-wheelers posted their highest ever sales in a calendar year, he pointed out.

Passenger vehicles (PV) grew by 4.2 per cent in 2024 as compared to the previous year, with sales of around 43 lakh units. Three-wheelers posted a growth of 6.8 per cent in 2024 as compared to the previous year, with sales of 7.3 lakh units.

The data for December showed passenger vehicle dispatches to dealers rose 10 per cent to 3,14,934 units against 2,86,390 units in December 2023.

Two-wheeler dispatches, however, witnessed a 9 per cent decline at 11,05,565 units over 12,12,238 units in December 2023. Three-wheeler dispatches rose to 52,733 units in December from 50,947 units in December 2023, SIAM said.

In the October-December quarter, passenger vehicles, commercial vehicles and three-wheelers posted their highest ever growth.

“The stable policy ecosystem of government in 2024, carrying on from the previous years, has helped the industry. As the new year commences with a positive sentiment being created through the Bharat Mobility Global Expo, this momentum would further propel growth in 2025,” Chandra noted.

In the October-December quarter, passenger vehicles, commercial vehicles and three-wheelers posted their highest-ever sales of Q3, said SIAM director general, Rajesh Menon.

Passenger vehicles grew by 4.5 per cent in Q3 of 2024-25 with sales of 10.6 lakh units compared to the previous year.

PV wholesales saw a strong 10 per cent growth in December to 3.15 lakh units compared to 2.86 lakh units in December 2023 with vehicle manufacturers offering discounts to clear piled up inventory before the start of 2025.