India's Automotive Industry Performance in August 2024

The Indian automotive industry experienced a dynamic start to fiscal year 2024, with varying trends across different vehicle categories. Data from the Society of Indian Automobile Manufacturers (SIAM) highlights both growth and challenges in production, domestic sales, and exports in August 2024.

• The overall automotive market saw positive momentum, with production increasing by 4.4% and domestic sales rising by 7.5%.
• Exports played a significant role, increasing by 13.9%.

Passenger Vehicle Segment: A Slight Decline

The passenger vehicle (PV) market faced a downturn in August 2024, with production seeing a minimal rise of 0.7% compared to the previous year. While exports increased by 3.3%, domestic sales experienced a 1.6% decrease, indicating a decline in consumer demand.

• Factors contributing to the slump could include heavy monsoon, economic challenges, shifting consumer preferences, and supply chain constraints.

Three Wheeler Market: Mixed Results

The three-wheeler market experienced contrasting outcomes across its two subcategories, passenger carriers, and goods carriers.

• Passenger carrier production increased by 8.5%, with domestic sales and exports also showing growth.
• Goods carrier production surged by 19%, but domestic sales declined by 7.6%, while exports saw a substantial increase of 280.4%.

Two Wheeler Market: Robust Growth

The two-wheeler market exhibited healthy growth across scooters, motorcycles, and mopeds. Two-wheelers remain a dominant mode of transportation, particularly in emerging markets where affordability and fuel efficiency are key.

• Total two-wheeler production increased by 4.9% compared to August 2023.
• Domestic sales grew by 9.3%, and exports jumped by 16.4%, indicating strong demand.

Exports: A Key Driver

Exports continue to be a vital driver in the Indian automotive industry. The significant increase in exports across various vehicle categories highlights the growing global demand for Indian-made vehicles.

• The strong performance in exports indicates the competitive advantage of Indian automotive manufacturers in international markets.

Future Outlook: Positive Expectations

The Indian automotive market is expected to witness continued growth in the coming months. The festive season is anticipated to boost vehicle sales further.

• The recent announcements of PM E-DRIVE and PM-eBus Sewa Schemes by the Government of India are likely to further stimulate demand for electric vehicles.

Key Takeaways

The August 2024 data suggests that the Indian automotive industry is on a path of recovery, with strong growth in key segments such as two-wheelers and exports. The industry's performance is further expected to be bolstered by upcoming festive season demand and government initiatives promoting electric vehicles.

Data Visualization