Automobile dispatches from manufacturers to dealerships rose 12 per cent in 2024, driven by strong consumer sentiment and robust two-wheeler demand, the Society of Indian Automobile Manufacturers (SIAM) said on Tuesday.

Total wholesales across vehicles climbed to 25.5 million units in 2024 compared with 22.8 million units in 2023, marking an 11.6 per cent growth.

“2024 was a reasonably strong year for the auto sector, underpinned by positive consumer sentiment and India’s macroeconomic stability,” SIAM president Shailesh Chandra said.

The two-wheeler segment led the charge, with dispatches growing 14.5 per cent year-on-year to 19.5 million units, up from 17 million units in 2023.

Scooter sales surged 20 per cent to 6.7 million units, while motorcycles registered a 12 per cent growth to 12.4 million units. Chandra said passenger vehicles and three-wheelers also achieved record-high sales in 2024.

Passenger vehicle dispatches increased 4 per cent year-on-year to 4.3 million units, while three-wheelers posted a 7 per cent rise, reaching 730,000 units. Commercial vehicles, however, saw a 3 per cent decline in sales, falling to 950,000 units in 2024.

“The stable policy framework of the Indian government has been instrumental in supporting the industry. With the momentum created by events such as the Bharat Mobility Global Expo, the auto sector is well-positioned for further growth in 2025,” Chandra said.

Passenger vehicle dispatches in December rose 10 per cent year-on-year to 314,934 units, while three-wheeler dispatches climbed 3.5 per cent to 52,733 units. However, two-wheeler dispatches dropped 9 per cent to 1.1 million units.

The October-December quarter saw passenger vehicles, commercial vehicles and three-wheelers achieve their highest-ever Q3 sales, SIAM director-general Rajesh Menon said.

Passenger vehicle sales grew 4.5 per cent year-on-year in the quarter to 1.06 million units, while three-wheeler sales edged up to 189,000 units.

Two-wheeler dispatches rose 3 per cent to 4.9 million units, and commercial vehicles posted a modest 1 per cent growth to 238,000 units.

With a strong foundation laid in 2024, the industry is poised for growth in 2025. However, challenges like uneven performance across segments remain.