Passenger vehicle domestic sales grew by 7.4% in first 9 months of FY24

Demand for utility services: The passenger vehicle (PV) industry's domestic sales grew by 7.4 per cent YoY in the first nine months of FY24, in terms of domestic sales, the Indian passenger vehicle (PV) industry constitutes 18 per cent of the country’s total automobile industry, credit rating agency CareEdge said in its report. 

The segment’s growth trajectory continued for two consecutive fiscal years with improved vehicle availability and an influx of new & refreshed models from various OEMs. This uplift was further supported by enhanced supplies and an increasing variety in the product portfolio, diversifying consumer demand.

“The passenger vehicles (PV) industry is likely to record a volume growth of around 8-10 per cent in FY24 as the pent-up demand levels off amid hike in vehicle prices this growth is anticipated to moderate in FY25 owing to tapering down of pent up demand while supported by healthy order book, improvement in the supply chain, new model launches and increasing demand in the Utility Vehicles (UVs) segment,” said Tanvi Shah, Director of CareEdge Research said. 

According to the report, the demand for premium variants is expected to remain healthy, led by increasing demand for the luxury & premium models, while the demand for entry-level variants is expected to remain muted due to high-interest rates and an inflationary environment.

Electric four-wheeler (E4Ws) sales have grown significantly in the past few years. 

The E4W segment contributes approximately around 6 per cent of the total EV market sales. Major OEMs have planned to introduce more EV models in the future, suitable for the Indian market which could boost their adoption and increase competition in the market.