4.2 million car sales may blast their way to record

The pandemic depressed the passenger vehicle market across the world. India emerged as the fastest-growing automobile market for a key reason. Semiconductor chips, important components for cars, went scarce due to the pandemic disrupting supply chains. And when the pandemic effect started waning, there was a big scramble for those chips. India was able to produce cars faster than other major markets because its cars have fewer chips.

Sales of cars, sedans, and utility vehicles in the local market reached over 300,000 units for the sixth consecutive month, with a growth rate of 1.9% in June. Industry estimates indicate that around 327,700 units were sold last month, contributing to the record-breaking sales of over 2 million passenger vehicles in the first half of the year. Maruti Suzuki reported an 8.4% increase in wholesale volumes, while Hyundai experienced a 2% growth in sales.

After a historic 27% growth in FY23 with 3.9 million units sold, passenger vehicle (PV) sales in India are expected to grow at a moderated pace of 6-8% in FY24, according to an Olx Crisil Mobility report. Over the long term (5-year period), a healthy growth rate of 5-7% CAGR is projected. India's PV sales continue to advance at a brisk pace. For the third straight year, most other markets, which have seen sales inch up year on year, are still struggling to reach the pre-pandemic levels.

More than 4.1 million cars, sedans and utility vehicles were sold in the domestic market last year, an 8.2% increase from the 3.79 million vehicles sold in 2022, showed data from industry body Society of Indian Automobile Manufacturers (SIAM) issued on Friday. Growth was powered by demand for utility vehicles, which comprised 57.4% of total sales.

The South Korean carmaker expects the market for passenger vehicles in India to reach just over 5 million units by 2030, out of which 20% is expected to be EVs

The luxury car market in India is on track for its best year ever, with Mercedes Benz and Audi experiencing strong sales growth in the first half of 2023. The demand is driven by a growing salaried luxury consumer base and new offerings, including electric vehicles. Mercedes Benz saw sales of its BEVs increase by 10 times in the first half of the year. Both companies expect stronger growth in the second half of the year as availability improves and the festive season approaches.

If you are planning to buy a car, go through this line-up of the most-awaited launches this year.

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Without volume, it makes little sense for Audi to start manufacturing units here. India is the world’s third-largest market for passenger vehicles, but it remains way behind China.

India's passenger vehicle shipments increased by 12.9% YoY to 331,747 units in April, with all automakers stepping up supplies to dealerships. However, the limited availability of semiconductors affected the production operations of Maruti Suzuki. Retail sales of passenger vehicles marginally grew by 3.5% YoY to 285,700 units during the month. While Maruti Suzuki reported robust increasing volumes in April, its sales were constrained due to a shortage of electronic components that affected deliveries. Despite an increase in enquiry levels following the introduction of new SUV models, concerns remain over inflation and the possible weakening of consumer sentiments due to less favourable monsoon rains.