WORLD NEWS

The Indian automobile industry has hit a milestone, achieving an impressive 19 percent growth in value for the fiscal year 2023-24, reaching Rs 10.22 lakh crore, according to a report by Primus Partners. The report further highlights that the country saw a significant 10 percent increase in the overall vehicle production. With this, India has positioned itself as the third-largest market for vehicle registration globally, trailing only China and the US.
Despite being the third-largest market for vehicle registrations, India lags behind countries like Japan and Germany in terms of value.The average price of vehicles in India remains lower compared to many advanced economies.

On the other hand, the Indian market continues to dominate the two-wheeler segment, producing over 20 million units last year. While two-wheelers account for 76% of the market volume, their value share stands at 18%.

The SUV and UV segments have seen a significant rise in the consumer preference lately with more and more manufacturers launching SUVs to have a bigger pie of their share in the segments. The segments have grown by an impressive 39 percent.
This growth can be attributed to a 23 percent rise in volume and a 16 percent increase in the average price of these vehicles. The price hike has been due to several factors, including a shift towards higher-end models, the growing popularity of hybrid and electric vehicles, and an increasing demand for features like automatic transmissions and sunroofs.

While the SUV and UV segments have thrived, the passenger vehicle segment, as a whole, experienced a 9 percent decline in volume, leading to a 4 percent drop in overall value despite a slight increase in prices.
In contrast, the two-wheeler segment saw a 10 percent rise in volume and a 13 percent increase in value. The three-wheeler segment also performed well, with volume and value growing by 16 percent and 24 percent, respectively. Meanwhile, the commercial vehicle segment experienced modest growth, with a 3 percent increase in volume and a 7 percent rise in value.
However, the commercial vehicle segment contributes significantly to the industry’s value, particularly through higher-priced vehicles such as trucks and specialty vehicles.