“The passenger vehicles (PV) industry is likely to record a volume growth of around 8%-10% in FY24 as the pent-up demand levels off amid hike in vehicle prices. This growth is anticipated to moderate in FY25 owing to tapering down of pent up demand while supported by healthy order book, improvement in the supply chain, new model launches and increasing demand in the Utility Vehicles (UVs) segment,” said Tanvi Shah, Director of CareEdge Research.
The demand for premium variants is expected to remain healthy, led by increasing demand for the luxury & premium models, while the demand for entry-level variants is expected to remain muted due to high interest rates and an inflationary environment.
Electric four-wheeler (E4Ws) sales have grown significantly in the past few years. The E4W segment contributes approximately around 6% of the total EV market sales. Major OEMs have planned to introduce more EV models in the future, suitable for the Indian market which could boost their adoption and increase competition in the market.
