Automobile industry is preparing to maintain momentum in the new year
New Delhi: The domestic automobile industry, which will register record-breaking sales in the year 2023, is busy adopting electric vehicles despite the possibility of sales growth slowing down in the coming year. In the year 2023, which ends in the next few days, the sales of passenger vehicles are expected to cross the mark of 40 lakh units. But at the beginning of the new year itself, vehicle manufacturers have announced to increase the prices of their vehicles. This may affect the sales growth of vehicles.
RC Bhargava, Chairman of Maruti Suzuki India, the country’s largest automobile manufacturer, said that sales are likely to be softer next year compared to the previous year. In such a situation, to maintain the pace of vehicle sales, special attention needs to be paid to small cars. The share of small cars in total vehicle sales was around four percent during April-October this year, whereas this ratio was around 14 percent in the financial year 2018-19. Bhargava told PTI, “As far as Maruti Suzuki is concerned, we expect more growth from the industry. There will also be positive growth in the sales of electric vehicles (EVs).
EV segment expected to gain strength
Rajesh Menon, Director General of SIAM, an organization of automobile manufacturers, said that the sales outlook for the automobile industry is expected to remain positive next year. This can be attributed to all-round economic growth. Expressing hope that the EV segment will gain strength next year, he said that the share of EV in total vehicle sales will continue to increase. Along with this, he also expressed hope of bringing the next phase of FAME scheme for promotion of hybrid and electric vehicles in 2024. The duration of FAME-2 scheme is ending next year. Manish Raj Singhania, president of vehicle distributors’ body FADA, said sales of passenger vehicles are expected to be in the low single digits next year, while in the case of two-wheelers it may be in the upper single digits.
2023 will be the year of sports utility vehicles
Vini Mehta, Director General of ECMA, an organization of auto component producers, said that with the advent of Bharat-NCAP, the emphasis on safety will increase and due to the focus being on EVs, the auto component sector will also have to make changes in its production. The year 2023 has been the year of increasing popularity towards sports utility vehicles (SUVs) and this trend is likely to continue next year also. Tarun Garg, Chief Operating Officer, Hyundai Motor India, said, “This year the market share of SUVs is expected to be around 49 percent and in case of Hyundai this ratio is 60 percent. “The SUV share of the industry is expected to exceed 50 per cent by 2024 and beyond 60 per cent for the company.”
Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said that apart from vehicles based on conventional engines, the company will also introduce new products in electric vehicles. In this the full capacity of Sanand factory will be used. Mahindra & Mahindra is also preparing to maintain its focus on the electric vehicle segment. The company’s Executive Director and Chief Executive Officer (Automotive and Agriculture Division) Rajesh Jejurikar said that the company is planning to vigorously bring its Born Electric portfolio to the Indian market.
2024 could be even better
This year, sales in the luxury vehicle segment have also been very good and now the demand for electric vehicles is also increasing. Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, said that in line with general industry estimates, this is likely to be the best year for the company.