India’s auto industry enters the new year aware of a potential slowdown in sales growth after posting record sales in 2023, but ready to embrace green technologies, led by electric vehicles. is completed. Passenger car sales are expected to exceed 4 million this year, and prices are expected to rise from January. RC Bhargava, veteran industry leader and chairman of Maruti Suzuki India, said next year’s sales are expected to be slightly slower compared to 2023.
He pointed out that the rapid growth of the industry requires a revival of the small car segment.
The share of entry-level cars in passenger car sales was about 14% in 2018-19, but fell to about 4% between April and October this year.
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“As far as Maruti Suzuki is concerned, we believe we will have higher growth than the industry,” Bhargava told PTI.
He is positive about the growth in electric vehicle (EV) sales next year, but points out that the focus should be on all green technologies that can help reach carbon neutrality goals.
Rajesh Menon, secretary general of Society of Indian Automobile Manufacturers (SIAM), said the industry’s sales outlook remained positive for next year.
He said, “The overall outlook for the Indian auto industry in 2024 looks good. This is due to the country’s all-round economic growth, which is also enabled by the government’s favorable policy environment.” said.
Regarding EVs gaining foothold next year, he said the industry is likely to continue to see an increase in the share of EVs across all vehicle segments.
“While this phase of the FAME scheme is scheduled to end in March 2024, we as an industry are optimistic that the Indian government will introduce another version of the FAME scheme beyond March 2024,” Menon said. Stated.
He added that continuing the FAME scheme beyond March 2024 will not only help consumers, but also allow the industry to further scale up and offer a wider range of products to consumers.
Manish Raj Singhania, president of the Federation of Automobile Dealers Associations, said the auto sector is poised for steady growth next year, with passenger cars expected to grow in the low single digits and two-wheelers in the high single digits. Ta.
Asked about the outlook for the EV sector, Singhania said the outlook for green technology and electrification in the automotive sector remains bright.
Vinny Mehta, secretary general of the Indian Automotive Components Manufacturers Association, said the introduction of Bharat NCAP will put greater emphasis on safety and drive a shift towards electric vehicles in the auto components sector.
“This change has led to increased integration of advanced driver assistance systems (ADAS) and enhanced safety products by original equipment manufacturers (OEMs),” he added.
SUVs, which are a feature of this season, are expected to gain even more momentum next year.
“This year’s SUV share in the industry is expected to be about 49%, and Hyundai’s share is expected to be 60%. In 2024, the industry’s SUV share is expected to exceed 50%, and the company’s SUV share is expected to exceed 60%. ” said Hyundai Motor. India COO Tarun Garg said:
Shailesh Chandra, Managing Director, Passenger Vehicles, Tata Motors, said the company will continue to introduce new internal combustion engine (ICE) and EV products.
“We are integrating the new Sanand plant into our industrial footprint, freeing up production capacity. We are strengthening our portfolio of EV and compressed natural gas (CNG) vehicles to increase the penetration of emissions-friendly technologies. “We plan to further promote this,” he said, adding about charging. Infrastructure growth remains a major barrier to mass adoption of EVs.
Tata Motors has initiated open collaboration with key charging stakeholders to accelerate the growth of chargers to provide a better experience to EV buyers, he added.
Domestic rival Mahindra & Mahindra is also looking to further ramp up its electrification program due to customer growth, favorable policy environment and expanding charging infrastructure.
Rajesh Jejrikar, Executive Director & Chief Executive Officer, Mahindra & Mahindra Auto & Farm Sectors “M&M plans to implement the Born Electric portfolio from 2025.” .
Overall, automakers expect the industry to remain buoyant due to the positive macroeconomic outlook, he added.
In the luxury segment, Mercedes-Benz India expects EV penetration to increase.
“However, the tipping point is still several years away, with customers looking to be convinced of the benefits and hassle-free experience of battery electric vehicle (BEV) ownership over internal combustion engine (ICE) vehicles. ” said Santosh, MD & CEO, Mercedes-Benz India. Iyer said.
He said the company expects this to be its best year on record amid supply chain-related disruptions as the industry grows.
Another luxury carmaker, Audi, is also open to electrifying its portfolio in India.
“As a brand, we remain committed to strengthening the electric vehicle infrastructure in the country and continue to invest in expanding our charging network,” said Balbir Singh Dhillon, Head of Audi India.
Regarding the outlook for 2024, he said: “2023 marked a strong performance for the luxury car sector, driven by stable demand. Looking ahead, we remain confident in the growth prospects for the luxury car sector in 2024. “I have this,” he said.
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