In a historic move, the Indian automobile sector has defied expectations to record unprecedented growth in its PV retail sales in the sixteenth financial year 2024-2025. In contrast to meagre sales of 3,640,399 units in the previous financial year, an impressive number of 3,948,143 were sold, registering an impressive growth of 8.45%, according to data released by the Federation of Automobile Dealers Association (FADA).
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Passenger Vehicles Sales Growth
The system and solar panel market achieved the top position due to easy store accessibility, an impressive product line and the launch of new models. Several factors may have contributed to the increase in sales including growth of models, better mix of models and the number of new models introduced by the company. On the other hand, better supply chain management, strategic vision in marketing, construction of roads and efficient infrastructure system are 2 other factors that aided in this achievement.
SUVs Take the Lead
SUVs claim 50% market share for the first time, signalling a shift in consumer preferences. A significant highlight of this record-breaking year is the dominance of sports utility vehicles (SUVs), which now command a remarkable 50% market share in India, a first in the nation’s automotive history. PV sales experienced a slight setback in March attributed to economic concerns and the electoral climate.
However, despite this growth, PV sales declined by 6% in March in the review of the same period last year. This decline can be summarized mainly with the help of deep economic uncertainties worsened by competitive discounting, and special financial and election periods. In contrast to the 10.29% growth across various models of cars in FY2013, auto retail sales witnessed a surprising growth in 2023. The growth recorded in the financial year was not limited to passenger vehicles only but also included commercial, two-wheelers. Three-wheelers and tractors are indicating strong performance in the automotive sector in general.
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Resilience Amid Challenges
Three-wheelers lead growth, while electric vehicles show promising signs. Despite challenges, the automotive sector demonstrates resilience, with three-wheelers witnessing a remarkable 48.83% increase in sales, followed by two-wheelers at 9.3%. Electric two-wheelers also show promise, with a notable increase in market share driven by the expiration of the FAME-II subsidy.
