De-growth in small cars to stagnate the overall market next fiscal: RC Bhargava

Maruti Suzuki chairman RC Bhargava believes that as the income of customers at the entry level increases, and scooter and motorcycle owners start upgrading, the sales of small cars will rebound.

India Business News: Maruti Suzuki India's net profit in the September quarter rose by 80.3% to Rs 3,716.5 crore, driven by higher sales, cost reduction efforts, and incre

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.

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.

2023 was the third straight year of record sales for Tata Motors, which boasts the widest range of electric vehicles in its portfolio. Sales last year totalled 553,000, led by its commanding position in the compact SUV segment and strong growth in hatches, despite the hatch segment degrowing at an industry level , said Shailesh Chandra, managing director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.

Samsung and Apple have increased their market share and revenues as cheaper rivals see sales slow.

India has become Apple's fifth largest iPhone market in Q2, surpassing Germany and France. Apple's increased focus on distribution and marketing in India has resulted in a 50% YoY growth in sales and a rise in market share to 5.1%.

According to data shared by Gartner, Indian shipments of laptops and desktops are expected to drop 13.4% this calendar year to 12.4 million units from 14.4 million last year.

Cut to the small car segment. Sales of Maruti Suzuki Alto, which once dominated sales charts across segments, halved year on year in the quarter ended September at about 24,000 units. Overall, sales of small cars (vehicles with length less than 3.6 metres) — already on the decline – crashed by 55% last quarter whereas sales of BMW X1 (which also comes in diesel and petrol options) grew 56% on year.

Federation of Automobile Dealers Associations President Manish Raj Singhania said the automobile sector is poised for steady growth next year with an expected low single-digit growth in passenger vehicles and high single-digit growth in two wheelers.