Indian auto industry to grow rapidly with record passenger car sales in 2023
The Indian automobile industry hit a new peak in 2023 with new passenger vehicle sales of 41 million units, registering a year-on-year growth of 8.2%. The achievement, valued at $4.5 billion, demonstrates the industry’s resilience in the face of adversity, including the ongoing pandemic and semiconductor shortage.
Riding the SUV and MPV wave
The surge in sales can be attributed to several factors, including the release of numerous new and improved car models. The increase in demand for SUVs and MPVs is a trend that reflects a global pattern and has led to the launch of models such as: Maruti Suzuki Jimny and Tata Nexon Implemented a facelift and greatly contributed to increased sales. The sales ratio of SUVs rose from 42% in 2022 to 48.7% in 2023. On the other hand, demand for hatchbacks and sedans decreased slightly.
Electric cars gain momentum
In addition to conventional vehicles, the field of environmentally friendly vehicles such as electric vehicles, hybrid vehicles, and CNG vehicles has grown significantly. Electric vehicle (EV) sales in India reached a record high of 1.53 million units in 2023, an increase of more than 50% year-on-year and accounted for 6.4% of total car sales.companies such as ora electric, TVS Motor Companyand tata motors It led the EV segment. The government’s initiative to provide subsidies worth Rs 52.28 billion to manufacturers has significantly accelerated the adoption of EVs.
Improving economic conditions and infrastructure development
The improving economic situation from 2021 onwards is driving growth in various industrial sectors and positively impacting car sales. Infrastructure improvements such as expressways and EV charging stations also supported the increase in sales. Government projects and his OEM participation played a major role in this progress.
In summary, the Indian automotive industry has made great strides in 2023, overcoming challenges and adapting to changing consumer preferences. With increased focus on electric vehicles and continued improvements in infrastructure, the industry is poised for sustained growth in the coming years.