Record car sales in 2023 | Image: Unsplash
The country’s passenger car market, valued at Rs 4.5 billion, has achieved a new milestone with annual car sales crossing Rs 4 million in 2023 for the first time in history. According to the Society of Indian Automobile Manufacturers (SIAM), vehicle segments that saw a surge in sales include sedans and utility vehicles.
SIAM revealed in a recent report that about 4.1 million passenger cars were sold in the domestic market in the last calendar year, registering an increase of about 8.2% compared to sales of 3.79 million cars. Emphasized. According to industry forecasts, in 2022.
What is the cause of this rise?
While COVID-19 has adversely affected the passenger car segment across the world, India has emerged as the fastest growing automotive market, primarily due to semiconductor chips.
These are important parts for cars, but supply chains have been disrupted by the pandemic, leading to shortages. Although there was a massive scramble for these chips after the effects of the pandemic began to fade, India’s low chip load produced cars faster than other major markets, the report said. Says.
The main factor behind last year’s record car sales were positive macro factors in one of the world’s fastest growing major economies.
Rising disposable income, rising middle class, proper development of roads and highways, propensity to travel more and pent-up demand due to the pandemic are boosting the Indian car market.
The report said the rapidly growing popularity of sport utility vehicles (SUVs) in the country and the widespread adoption of electric vehicles led to record sales growth last year.
“The passenger car industry is poised to record record sales in calendar year 2023 (CY23), reaching well over 4 million units, supported by solid supply conditions, new nameplates launched in the SUV segment, and solid sales. It is expected,” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, citing media reports.
“The industry has broken out of its high base and recorded single-digit growth across the board. The main highlight of this modest rise has been the sharp growth recorded in the emissions-friendly product category. Both EV and CNG The segment registered over 90 per cent growth and over 25 per cent growth, indicating the growing preference for green and smart technologies by Indians,” the report added. .