India's light vehicle sales to hit record 4.9 million as economy grows

SUVs emerged as the driving force behind India's robust vehicle sales.

India's light vehicle market is anticipated to achieve a record-breaking sale of 4.9 million vehicles driven by economic growth, government stimulus, sustained SUV demand, and new model launches, according to GlobalData. 

Ammar Master, director (South Asia) of Automotive at GlobalData, noted a strong start in 2024, with January wholesales up 12% year-on-year (YoY) and February sales projected to rise by around 9% YoY, driven by new models.

“The government's fiscal stimulus, timed with the upcoming general elections, is expected to further spur job and income growth, thereby enhancing vehicle demand in the next few months," he added.

SUVs emerged as the driving force behind India's robust vehicle sales. In 2023, SUV sales experienced a 24% YoY growth, totalling 2 million units and constituting over half of the country's passenger vehicle (PV) volume. 

The surge was propelled by manufacturers' efforts to meet consumer preferences through the introduction of diverse SUV offerings across various market segments. 

GlobalData also forecasted SUV sales to reach 2.2 million units in 2024, marking a 9% year-on-year increase.