Car sales hit record 43-lakh mark in 2024, driven SUV demand & rural consumption revival 

The Indian passenger vehicle market achieved a historic milestone in 2024, with wholesale sales reaching a record 43 lakh units. Leading automakers such as Maruti Suzuki, Hyundai, Tata Motors, Toyota Kirloskar Motor, and Kia all posted their best-ever annual sales figures. 

This growth was fueled by the continued rise in SUV popularity and strong contributions from rural markets, helping the industry surpass the previous record of nearly 41.1 lakh units set in 2023. Maruti Suzuki’s Senior Executive Officer for Marketing & Sales, Partho Banerjee, noted that 2024 saw a 4.5 to 4.7 percent increase in sales compared to the previous year. 

Maruti Suzuki itself achieved its highest-ever wholesale and retail sales. With 17,90,977 units sold, it broke its own six-year record, surpassing the 17,51,919 units sold in 2018. Retail sales also reached a new peak at 17,88,405 units, surpassing the 17,26,661 units sold in 2023. 

The company’s rural sales saw significant growth, with a 16 percent increase in December 2024, bolstered by favorable monsoon conditions and strong minimum support prices (MSP). Maruti Suzuki’s December 2024 sales were 1,30,117 units, a 24.18 percent increase from the previous year. 

"Our rural sales have done pretty well actually. In the month of December, rural (sales) has grown by the tune of 16 per cent...,” Banerjee noted. 

Hyundai Motor India also posted record domestic sales of 6,05,433 units in 2024, achieving a 67.6 percent contribution from the SUV segment. However, its December 2024 sales saw a slight decline of 1.3 percent compared to the previous year. 

Tata Motors experienced a steady 1 percent growth in December 2024, selling 44,289 units. The company posted a fourth consecutive year of record annual sales with 5.65 lakh units, and its outlook for the passenger vehicle industry remains optimistic. Tata’s success has been driven by the strong demand for SUVs and eco-friendly powertrains. 

Toyota Kirloskar Motor also had a remarkable year, recording 3,26,329 units sold in 2024, a 40 percent increase from the previous year. The SUV and MPV segments were key contributors to this growth. TKM Vice President, Sales-Service-Used Car Business, Sabari Manohar said, “There is a growing shift of consumer preferences towards vehicles offering sustainability, the value proposition of dependability quotient, enhanced safety and better resale value, which is boosting our sales.” 

Kia India reported a 6 percent increase in sales, reaching 2,55,038 units in 2024, also marking its best-ever annual performance. The company's focus on timely deliveries helped strengthen its position in the market, Kia India Senior Vice-President and Head of Sales and Marketing Hardeep Singh Brar said. 

Mahindra & Mahindra reported an 18 percent increase in December 2024 sales, with 41,424 units sold. “The year ended on a high, as we became the only Indian auto company to attain the Dow Jones Sustainability Index (DJSI) world leader status within the auto sector,” M&M Ltd President, Automotive Division, Veejay Nakra said. 

JSW MG Motor India saw a 55 percent increase in December 2024 sales, with its electric vehicle (EV) offerings performing particularly well, contributing over 70 percent of total sales. 

Nissan Motor India reported a 51.42 percent increase in December 2024 wholesales. at 11,676 units in December 2024 compared to 7,711 units in December 2023. Its domestic sales stood at 2,118 units last month against 2,150 units in the year-ago period. 

In the luxury car segment, Audi India experienced a notable 26.6 percent year-on-year drop in retail sales for 2024, with sales totaling 5,816 units, compared to 7,931 units in 2023. This decline was primarily attributed to supply chain disruptions that affected the company’s ability to meet customer demand.  

Audi India’s Head, Balbir Singh Dhillon, acknowledged the supply-related difficulties during the first half of 2024. However, he highlighted that the second half of the year saw a significant improvement in supply levels, resulting in a 36 percent increase in sales volumes in the fourth quarter compared to the third quarter of 2024. This recovery signals positive momentum for the brand as it navigates the supply chain issues. 

Overall, 2024 proved to be a landmark year for the Indian passenger vehicle market, with several manufacturers setting new sales records and benefitting from a combination of SUV growth, rural market expansion, and strong demand for sustainable and feature-rich vehicles.