Vehicle retail sales hit record 26.1 mn in '24, but '25 outlook muted

Vehicle retail sales in India grew by 9 per cent in 2024, reaching a record of nearly 26.1 million units and surpassing the pre-Covid peak of 25.4 million units set in 2018, thus, in the process, finally marking a full recovery from the pandemic-induced slowdown.

- SOHINI DAS & SHINE JACOB

This milestone follows two consecutive years of double-digit growth, with sales climbing from 24 million units in 2023.

Industry experts, however, predict a subdued 2025: Passenger vehicle (PV) sales are expected to grow in low single digits, two-wheeler sales are projected to rise by 6-8 per cent, and tractor sales are anticipated to grow by 3-5 per cent. Commercial vehicle sales, meanwhile, will likely depend on government infrastructure spending.

Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said the industry remains "optimistic" about PV growth in the new calendar year.

Data from the VAHAN portal (Ministry of Road Transport and Highways) showed that total new vehicle registrations were 24.16 million in 2019, 18.6 million in 2020, 18.9 million in 2021, and 21.5 million in 2022.