Automakers count on to shut the 12 months with gross sales of 4.10-4.17 million vehicles, utility automobiles and vans – 8-10% greater than 2022 in comparison with the sooner estimate of about 0-6% progress – regardless of the excessive base of final 12 months when gross sales had grown by 23% to three.79 million models, a number of senior executives instructed ET.
Higher-than-expected demand for sports activities utility automobiles (SUVs) on the extra premium finish of the market is driving the gross sales, they mentioned.
“Regardless of the precarious geopolitical state of affairs, demand momentum stays sturdy, indicating the resilience of the home market,” mentioned Tarun Garg, chief working officer (COO) at Hyundai Motor India. “The pageant season has been good to this point…order influx stays wholesome. We did our highest-ever deliveries this Dhanteras. We count on progress within the business will likely be greater than what was estimated at the beginning of the 12 months.” As many as 3.47 million passenger automobiles have been offered within the native market within the first 10 months of the 12 months – a rise of about 9% over 3.19 million models offered in the identical interval final 12 months.
New launches within the fast-growing SUV section – from Maruti Suzuki Fronx to Hyundai Exter and Kia Seltos – have drawn in consumers, rising the section share by greater than 500 foundation factors to over 48% until October from about 43% within the corresponding interval of final 12 months.
“The festive season has been very constructive this 12 months,” mentioned Shashank Srivastava, senior government officer (advertising and gross sales) at Maruti Suzuki. “Actually, for the primary time, business gross sales (throughout the festive season from Onam to Bhai Dooj) will cross a million mark. This represents progress of 18% over final 12 months volumes of 850,000 models. This progress has all come on the again of demand for SUVs and MPVs, which now comprise practically half of all passenger automobiles offered within the native market,” he mentioned.It’s estimated that between Dhanteras on Friday final and Bhai Dooj on Tuesday, business deliveries could be within the vary of 55,000 to 57,000 automobiles, which will likely be a progress of over 21%. Final 12 months the business had delivered round 45,000 models throughout this era.
Maruti Suzuki, which stories knowledge on a fiscal 12 months foundation, expects gross sales within the native market to shut at about at 4.14 million models in FY24, greater than the business’s earlier estimate of 4.05-4.10 million models.
Hardeep Singh Brar, vice-president and nationwide head (gross sales and advertising) at Kia India, mentioned shopper demand has been sturdy in segments priced upwards of ₹7 lakh. “We, actually, elevated our manufacturing final month to scale back ready on our merchandise,” he instructed ET. “The business has grown sooner than anticipated by about 9% this 12 months. We wish to develop in keeping with the market to keep up our momentum and market share.”
Kia is anticipating to develop gross sales by greater than 8% to promote 275,000 models in 2023. The festive season will draw to a detailed with Bhai Dooj. However the upcoming wedding ceremony season in North India will assist demand , business watchers mentioned.