NEW DELHI:
Powered by SUVs, the automobile trade crossed the psychological 4-million mark for the primary time in 2023, rising by 8% through the 12 months. Firms, nonetheless, count on “flat to reasonable” progress curve within the new 12 months as issues round rates of interest and the top of pent-up demand are more likely to decelerate new purchases.
Automobile gross sales wrapped up 2023 with complete gross sales at 41.1 lakh models, a progress of 8% over the 37.9 lakh vehicles bought in 2022.The trade, which was below strain after Covid-induced lockdowns have been introduced round March of 2020, had skilled a large turnaround when markets opened up once more. The pandemic additionally gave a lift to non-public mobility.
Whereas scarcity of semiconductors had dampened manufacturing for many elements of the Covid interval – main to very large ready intervals throughout many fashions from corporations akin to Mahindra & Mahindra, Maruti, Hyundai, Kia and Tata Motors – the gradual enchancment in provides has now seen many of the backlog getting cleared.
The trade, nonetheless, feels that going within the new 12 months will not be as sturdy as within the earlier years because the sales-base is now larger, and backlogs are gone. “Going by the present evaluation, it appears like progress could be muted and in single digits,” Shashank Srivastava, senior government officer (gross sales & advertising and marketing) at Maruti Suzuki, mentioned.
The nice half for the trade is that the common promoting worth for autos has gone as much as round Rs 11.5 lakh in 2023, in opposition to Rs 10.6 lakh final 12 months, and Rs 8.2 lakh on the finish of fiscal 2019-20. Speaking concerning the causes for the surge, Srivastava listed out the rising want of patrons to go for feature-rich autos, the rising share of SUVs, and the spike in retail costs.
Maruti bought a file 20-lakh models in 2023, which included 2.7 lakh models by exports. Hyundai, the second-biggest automobile firm, additionally had a robust 2023 as its home gross sales crossed 6 lakh models for the primary time, rising by 9%. COO Tarun Garg mentioned the numbers had been powered by its SUV portfolio, and added that the nation might emerge because the “vivid spot” for the worldwide automotive trade.
