April auto sales up y-o-y by 1.3%

15 May 2024 , 09:36 AM

Domestic auto sales increased 1.3% to 335,629 vehicles in April. Automakers are of the view the slow growth rate is due to post-pandemic pent-up demand  dying off.

The moderate pace of increase in April was caused by a high base brought on by the rapid growth in the previous two years, which impacted the year-over-year comparison.

Despite a slowdown in growth, April marked the fourth consecutive month in CY24 that local market sales volume broke a record, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Sales of two-wheelers saw robust growth, rising to 1,751,393 units from a year earlier, a 30.8% increase. Sales of three-wheelers increased 14.5% to 49,116 pieces.

“Year 2024-25 has started on a reasonably good note for the auto industry, as all the segments have posted growth in April 2024 compared to April 2023, driven by positive consumer sentiment and festivities in this month,” Vinod Aggarwal, president of SIAM, said.

Automakers are confident that the momentum for demand will continue in the future because, according to Aggarwal, there will be above-average monsoon rainfall, policy consistency following elections, and government support for infrastructure and industry.

Two years in a row, Indian automakers reported record sales thanks to the pandemic-induced pent-up demand. In the fiscal year that ended on March 31, 2024, sales of passenger cars increased by 8.4% to a new high of 4.22 million units. Sales in the preceding fiscal year had increased by 27%.

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