Indian customers are liking features and expensive models, automobile industry grew by 19 percent

Mumbai : The strong performance of the Multi Purpose and Sports Utility Vehicle (SUV) segment in the Indian automobile industry has led to a boom in the automobile industry. The country's automobile industry has grown by 19 percent to Rs 10.22 lakh crore in the last financial year 2023-24. This has come to light in the report of management consulting company Primus Partners.
A report released by Primus Partners on Wednesday said that the size of the automobile industry grew by 10 per cent in terms of volume in 2023-24. The notable change was in the UV (Multi Purpose Vehicle) and Sports Utility Vehicle (SUV) segments, which grew by 23 per cent in volume and 16 per cent in value in the last fiscal, taking the total value to 39 per cent.
Indian customers prefer expensive models
The report said that the average price hike in this segment was due to a general increase in prices, a shift towards higher segments and hybrids and automatics, the popularity of sunroofs and rising demand for electric vehicles (EVs). According to the report, Indian customers are preferring higher and more expensive models across various segments, and the average price of vehicles is increasing. Anurag Singh, Managing Director, Primus Partners, said that India is preferring more features and higher priced vehicles, bypassing low-priced products. Consumer preferences and strong economic fundamentals are driving this change in the Indian automobile industry. The special thing is that the UV and SUV segments are becoming the preferred choice for most Indian consumers.
Decline in passenger vehicles
On the other hand, the passenger vehicle (PV) segment witnessed a nine per cent decline in volumes due to marginal price hikes, which led to a four per cent drop in value. In the two-wheeler segment, India witnessed a growth of 10 per cent in volumes and 13 per cent in value. On the other hand, the three-wheeler segment grew by 16 per cent in volumes and 24 per cent in value and the commercial vehicle segment grew by three per cent in volumes and seven per cent in value.
The report said that India ranks third after China and the US in terms of registered vehicles, but in terms of value it lags behind countries like Japan and Germany. Moreover, the average price of a vehicle in India is lower than many advanced countries. According to the report, the value of the Indian automobile industry is growing faster than the volume. (With agency inputs)