Sales of motor vehicles, as captured by registrations on the Ministry of Road Transport and Highways Vahan portal, appears to be on the slow lane. The number of new vehicles registered between April 2023 and February 2024 was 2.20 crore, registering 8.96 per cent increase compared with the same period last year. The growth was primarily led by two-wheelers while registrations of new commercial vehicles declined.

Varun Saboo, Head of Equities, Anand Rathi Shares and Stock Brokers, said, “Indeed, an 8.9 per cent growth in vehicle registration is extremely positive, considering that the base has been very strong in the last couple of years. Post pandemic, the demand outgrew, led by pent-up demand.”

As per Vahan data, vehicle registrations have moved in a band between 15 lakh and 21 lakh with the upper limit being surpassed in the festival period in the September and December quarter every year. But the year-on-year growth in registrations has slowed substantially in January and February 2024, growing 5 per cent and 3 per cent respectively.

Commercial vehicles slow

Between April 2023 and February 2024, the highest number of vehicle registrations in India were for motorcycles or scooters, reaching a total of 1.41 crore. This was followed by motor cars with 30.97 lakh and goods carriers with 6.66 lakh registrations, respectively.

Motorcycle or scooter registrations witnessed a growth of 10.33 per cent in the 11 months of this fiscal, while motor cars saw a 5.83 per cent growth. However, there was a decrease in goods carrier registrations, declining 0.51 per cent during this timeframe. This decline is not a good sign as it shows that manufacturing and industrial activity could be slowing down. According to Saboo, “This is because of the emission norm change in April 2023, which led to pre-buying between January and March 2023.”

In urban centres in India, aside from relying on public transportation, people predominantly use personal vehicles like bikes, scooters, and cars. This is evident from the fact that out of 2.37 crore vehicle registrations in 2023, a significant 85 per cent are attributed to these two modes of transportation.

Green mobility

The data indicates a significant increase in vehicle registrations for three-wheelers and e-rickshaws too, growing 62.94 per cent and 45.05 per cent, respectively in the 11 months of this fiscal. The growth of three-wheelers and e-rickshaws is expected to accelerate in the Indian market. A CEIC report suggests a growing disparity between electric vehicle (EV) and diesel car sales in India, with EVs potentially surpassing diesel cars by June 2024.

Uttar Pradesh, Maharashtra, and Tamil Nadu lead in vehicle registrations in India, with 34.43 lakh, 25.63 lakh, and 18.26 lakh registrations in 2023, respectively. The Ministry does not include information on vehicle registrations for Telangana.

comment COMMENT NOW