India Remains World’s Third Largest Car Market Even As Growth Rate Halves

India managed to hold on to its moniker of being the world’s third car market even as the annual growth rate halved in 2024.

Wholesales—or dispatches to dealerships from the factory floor—rose 4.2% year-on-year to 42,74,793 units in 2024, according to data released by the Society of Indian Automobile Manufacturers. In 2023, the industry grew 8.35% to scale the four-million mark for the first time. In the process, India eclipsed Japan to become the world’s third-largest car market.

Exports rose 9.7% year-on-year to 7,43,976 units, the SIAM data showed.

“2024 has been reasonably good for the auto industry. Positive consumer sentiments and the country’s macroeconomic stability helped in propelling reasonable growth for the sector across vehicle segments,” SIAM President Shailesh Chandra said in a statement. 

“The stable policy ecosystem, carried over 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.”

Overall, India’s auto industry grew 11.6% year-on-year to 2.55 crore units on the back of two-wheelers that accounted for nearly 2 crore units alone. The industry produced 3.06 crore units last year. 

Two-wheeler sales in India rebounded to pre-pandemic highs, surging as much as 14.5% year-on-year to 1.95 crore units. Exports surged 22.6% year-on-year to 39.77 lakh.

The commercial-vehicle industry remained lacklustre. Sales of trucks and buses of various shapes and sizes fell 2.7% year-on-year to 9,51,991 units. Production itself was lower by 4.2% at 10,23,278 units.