India’s automobile industry experienced a significant slowdown in September 2024, as overall vehicle sales dropped by 9.26% compared to the same period last year, according to the latest data from the Federation of Automobile Dealers Associations (FADA).
The two-wheeler segment, which is a major driver of mobility in India, witnessed a steep decline of 8.51% in sales. Similarly, personal vehicle sales saw an even sharper contraction, falling by 18.81%. Commercial vehicle sales, essential for the transport of goods and economic activities, also registered a drop of 10.45%.
However, not all categories fared poorly. The report highlighted that sales in the three-wheeler and tractor segments experienced growth. Three-wheeler sales rose slightly by 0.66%, while tractor sales surged by a notable 14.69%, indicating strong demand in the agricultural sector despite the overall market slowdown.
Experts attribute the decline in auto sales to several factors, including high inflation, rising interest rates, and an overall cautious consumer sentiment. However, the growth in tractor sales reflects the resilience of the rural economy, which has benefited from favorable monsoon conditions and government support for agriculture.
As the Indian auto industry continues to navigate through these challenges, manufacturers and dealers are hopeful that upcoming festive season offers and the introduction of new models will provide a much-needed boost to sales.