India new car sales to dealers saw growth of 4.2% in 2024, the slowest in four years, according to a report published by Society of Indian Automobile Manufacturers (SIAM).

Passenger vehicle sales, encompassing small cars, sedans, and sport utility vehicles (SUVs), reached a record 4.74 million units from January to December of 2024.

This figure represents a slight increase from the 4.11 million units sold in 2023.

Despite the overall growth, the sales of small cars fell by 14.4%, as rising prices outpaced the income levels of the target demographic, according to Reuters.

Conversely, SUVs and large cars experienced a 16.8% increase in sales last year. This growth, however, was modest compared to the 22% surge reported in 2023.

Small cars, which account for one-third of total car sales in India, saw a decline, while SUVs and other large vehicles, which make up the remaining two-thirds, continued to see an uptick in sales.

The latter half of 2024 saw manufacturers and dealers offering higher discounts in an effort to stimulate the market and attract buyers.

This strategy was particularly noted as the industry navigated through a period of dampened sales momentum.

SIAM president Shailesh Chandra said: “2024 has been reasonably good for the Auto industry. Positive consumer sentiments and the country’s macroeconomic stability, helped in propelling reasonable growth for the sector across vehicle segments.

“Passenger vehicles grew by 4.2% in 2024 as compared to last year, with sales of around 4.3 million units. Three Wheelers posted a growth of 6.8% in 2024 as compared to the previous year, with sales of 7.3 million units.

“The stable policy ecosystem of Government of India in 2024, carrying on from the previous years, has helped the industry. As the new year commences with a positive sentiment being created through the Bharat Mobility Global Expo, this momentum would further propel growth in 2025.”