Key Points
Small cars may stage a comeback by 2026 as the income of customers at the entry level rises and scooter and motorcycle owners start upgrading, Maruti Suzuki chairman RC Bhargava told ET in an interview..
Indias record car sales in FY24 saw SUVs surging and small cars struggling..
He does not have the money (to buy a car), Bhargava said.. Increases in input costs, insurance charges, road taxes, and the transition to higher emission and safety norms, among others, led to a spike in prices in the price-sensitive, small-car and two-wheeler segments, hitting demand..
If you study these trends in the two-wheeler market, you will see (the correlation between) price and the affordability factor, Bhargava said.. While official numbers are yet to be released by the Society of Indian Automobile Manufacturers (SIAM), industry estimates show. two-wheeler sales grew in double digits in FY24, finally crossing pre-Covid levels, buoyed by sustained revival in demand in both urban and rural markets...
Given low vehicle penetration, demand for cars is present at the entry level, he said.. To be sure, sluggish sales have prompted several automakers including Nissan, Honda and Volkswagen, to exit the small-car market in the country over the last few years..
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