My India First

My India First

Passenger autos set for brand new gross sales milestone of 4 million models in FY24

The passenger automobile section is all set to scale a brand new peak, promoting greater than 4 million models this fiscal yr, with sport utility autos driving the demand by accounting for practically half the quantity.

Gross sales of passenger autos, which have been 2.5 million models a decade in the past, have picked up pace after a blip in the course of the preliminary interval of the Covid wave. Gross sales touched 3.8 million models within the fiscal yr ended March 31, 2023, a report which will probably be damaged this fiscal yr with the quantity probably rising to 4.1 million models, in keeping with trade consultants.

SUV gross sales are projected to be round 1.9 million models this yr, a multi-fold enhance from 363,000 models 10 years in the past in FY14. The share of hatchbacks and sedans within the gross sales combine fell to 40% from 71% previously one decade, recommend information from vehicle consultancy Jato Dynamics.

SUVs proceed to be robust progress drivers for automotive corporations, “contributing to just about 60% of our whole gross sales towards the trade contribution of 46-47%”, stated Tarun Garg, chief working officer at Hyundai Motor India, which has a spread of SUVs throughout value segments. “The share of first-time consumers preferring SUVs continues to go up…,” he stated.
In the meantime, the variety of manufacturers out there has decreased with some producers exiting the PV section.

Change in client preferences

The variety of PV fashions on sale additionally fell to 87 from 107 a decade in the past, present information from Jato Dynamics.Maruti Suzuki has stored its PV market share of greater than 42% previously 10 years and SUVs now contribute considerably to the gross sales, stated senior government director Shashank Srivastava. In the meantime, the share of the beforehand bread-and-butter small vehicles is falling within the automaker’s gross sales combine. The final decade has not solely seen a change in client preferences for SUVs, but in addition in direction of petrol-powered autos, with trade consultants anticipating their market share reaching 66% in FY24 from 41% in FY14. In the identical interval, demand for diesel autos is projected to lower to 18% from 51%.

“Whereas this decline (in diesel automobile gross sales) could also be attributed to environmental considerations and stricter emissions laws; many SUVs, MPVs and vans proceed to retail within the diesel section,” stated Ravi Bhatia, president of Jato Dynamics. CNG, EVs and hybrids too are steadily gaining traction as various gas choices, reflecting elevated client desire in direction of cleaner and cheaper gas selections.

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