Synopsis
- “The passenger vehicles (PV) industry is likely to record a volume growth of around 18%-20% in FY24 as the pent-up demand levels off amid hike in vehicle prices. This upward trend of 18%-20% is anticipated to persist in FY25 led by strong order book, improvement in the supply chain, robust demand for new model launches and increasing demand in the Utility Vehicles (UVs) segment,” says Tanvi Shah, Director, CareEdge Research.
- 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% 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.
