India’s vehicle retail sales surged by 9% in 2024, setting a new record of 26.1 million units and surpassing the pre-pandemic peak of 25.4 million units achieved in 2018. This achievement signals a full recovery from the Covid-19-induced slowdown, following a sustained period of growth over the past two years. Sales had risen to 24 million units in 2023, continuing a trend of robust performance.
This milestone comes after two consecutive years of double-digit growth. Data from the VAHAN portal reveals a steady recovery, with vehicle registrations climbing from 18.6 million in 2020 to 18.9 million in 2021 and 21.5 million in 2022. Compared to the 24.16 million units recorded in 2019, the industry’s progress marks a significant recovery trajectory.
Looking ahead, industry analysts predict a modest outlook for 2025. Passenger vehicle (PV) sales are anticipated to grow in low single digits, while two-wheeler sales could see a rise of 6-8%. Tractor sales are projected to grow by 3-5%, while commercial vehicle sales will depend heavily on government infrastructure spending.
Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, expressed optimism about PV growth in the coming year. The electrification of vehicles is also expected to gain momentum, aligning with broader market trends in sustainability.
Hemal Thakkar, senior practice leader at Crisil, highlighted India’s remarkable economic recovery, stating that the country has not only surpassed pre-Covid sales levels but has also set a new benchmark. With GDP growth projected to exceed 6.5% in FY26 and normal monsoons expected to support market segments, the auto industry is poised for steady growth. However, much depends on the upcoming Budget and government infrastructure investments.
