The industry saw 24 CNG PV launches this fiscal as compared to 14 in FY 20. In the case of electric, there were 31 PV launches as compared to 7 models in FY20. Strong hybrids have also seen increased traction, with sales outpacing electric for the first time in last 2 months. Petrol model launches at 111 were lower by 21% and diesel at 54 down by 61%, according to Jato Dynamics.
The industry saw 24 CNG PV launches this fiscal as compared to 14 in FY 20. In the case of electric, there were 31 PV launches as compared to 7 models in FY20. Strong hybrids have also seen increased traction, with sales outpacing electric for the first time in last 2 months. Petrol model launches at 111 were lower by 21% and diesel at 54 down by 61%, according to Jato Dynamics.
The fall in sales of small cars and the rise in SUV sales may not be only due to Indians now ditching small cars and preferring to buy SUVs. Due to several factors, carmakers are focusing more on SUVs, making them affordable even if they have to downsize them in different respects, just as small-car segment crumbles under stress.
In percentage terms, sales rose by a modest 2% during the month, hemmed in by a high year-earlier base which saw robust post-pandemic pent-up demand. Companies mostly report wholesale dispatches from plants to dealerships and not retail sales to customers.
The automotive industry in India as we know today has grown tremendously in the past few decades. Today, car penetration in the country stands at 27 per 1000. Several new companies have joined the bandwagon, a lot more new models were being introduced, consumer interests have evolved and the urban-rural divide has been narrowing. This article looks at how the auto industry has transformed in the rural markets to broaden their customer base and scale up sales.
Democracy, demographic dividend, and diversity are the three D’s propelling the automobile industry onto the fast lane, according to Union Minister Piyush Goyal. Efforts have to be taken to increase automobile exports from India, one of the largest automotive markets in the world, and a dedicated taskforce should work for this goal, Pawan Goenka, Chairman, Steering Committee on Advancing Local value-add & Exports (SCALE), Ministry of Commerce & Industry, told the 63rd SIAM convention.
Volkswagen Group commenced exports from India in 2011. Polo and Vento models of the Volkswagen brand paved the way for India to emerge as a prominent export hub for the group, it said.
Experts suggest that alternative fuels and electrification will drive the way towards decarbonisation in the CV industry. Major transformations in the industry include safety standards and modernisation. While autonomous is fast becoming prevalent in mature markets, for India it is likely to be focused more on improving road safety as well as driving comfort with the intelligent use of ADAS features. Further, new businesses and operating models will require close integration of both manufacturing and the supply chain.
Vinod Aggarwal, President, SIAM, said, “In the quarter, the auto industry seamlessly transitioned to the very stringent BSVI Phase 2 Emission Norms from April 1, 2023, reflecting the commitment of the industry towards the environment.
Global majors do not want to sour their relationship with suppliers in China, which still offers clear economies of scale for many key components. Despite the challenges, India's component industry aims to double exports in about four to five years from the current USD 20 billion.
Sales of SUVs and multi-purpose vehicles (MPVs) exceeding 4 metres in length now make up at least 10% in volume terms even at compact-car makers such as Maruti Suzuki. The share of sub-4 metre vehicles, which enjoy policy preference from a taxation standpoint to encourage car ownership, has shrunk 6 percentage points in three years to 72%.
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