September 18, 2023
In the fiscal year ending March 31, 2023, sales reached 3.8 million units
SUV sales are projected to reach approximately 1.9 million units this year, a remarkable increase from 363,000 units a decade ago in FY14
Passenger vehicle sales, which stood at 2.5 million units a decade ago, have rebounded after a brief slowdown during the initial phase of the Covid pandemic
Demand for diesel vehicles is projected to decline from 51% to 18% during the same period
The passenger vehicle segment is on track to reach a historic milestone, with sales expected to surpass 4 million units in FY23. Sport utility vehicles (SUVs) are the primary driving force behind this surge in demand, accounting for nearly half of the total volume.
Passenger vehicle sales, which stood at 2.5 million units a decade ago, have rebounded after a brief slowdown during the initial phase of the Covid pandemic. In the fiscal year ending March 31, 2023, sales reached 3.8 million units, a record that is expected to be surpassed this fiscal year, likely reaching 4.1 million units, as forecasted by industry experts.
SUV sales are projected to reach approximately 1.9 million units this year, a remarkable increase from 363,000 units a decade ago in FY14. Data from automobile consultancy Jato Dynamics indicates a shift in the sales mix, with hatchbacks and sedans’ combined market share declining from 71% to 40% over the past decade.
SUVs remain a key growth driver for car manufacturers, constituting nearly 60% of total sales, compared to the industry average of 46-47%. Meanwhile, the passenger vehicle market has seen a reduction in the number of brands as some manufacturers have exited the segment. The number of passenger vehicle models available for sale decreased from 107 a decade ago to 87.
Maruti Suzuki has maintained its passenger vehicle market share of over 42% for the past decade, with SUVs now playing a significant role in its sales. Consumer preferences have shifted towards SUVs and petrol-powered vehicles, with experts predicting their market share to increase from 41% in FY14 to 66% in FY24. In contrast, demand for diesel vehicles is projected to decline from 51% to 18% during the same period.
Experts attributed the decline in diesel vehicle sales to environmental concerns and stricter emissions regulations, although certain SUVs, MPVs, and vans remain available in the diesel segment. Additionally, alternative fuel options such as CNG, electric vehicles (EVs), and hybrids are gaining popularity, reflecting consumer preferences for cleaner and cost-effective fuels.
Source: Economic Times