The anticipated dispatches for the current month are projected to range from 3.60 to 3.62 lakh units, representing a modest growth of 1-2 percent. Nevertheless, this achievement will mark the highest-ever monthly sales in the industry’s history.
The Indian passenger vehicle market is poised to reach a historic milestone by surpassing 2 million vehicle sales in the first half of FY24.
This year has been nothing short of record-breaking, with each month of the fiscal year witnessing the highest-ever monthly sales for their respective periods.
Market insiders predict that the dispatches for September are likely to fall between 3.6 to 3.62 lakh units, once again setting a new industry peak. This growth of 1-2 percent over last year’s high base of 3.55 lakh units is remarkable.
Shashank Srivastava, Senior Executive Officer of Sales and Marketing at Maruti Suzuki, believes that FY 2023-24 has the potential to be a transformative year for the industry. He emphasizes that the industry is evolving rapidly across various parameters, including pricing, vehicle size, and customer preferences, despite sustained price increases over recent years. This could make it a defining year for the industry.
This optimistic view holds even as the market is expected to grow by only 7% in the first half of FY24. Srivastava asserts that the transformation lies in the qualitative aspects of the market.
Currently, there is an inventory of around 30-35 days in the market, with a total system value exceeding Rs 36,000 crore and an average price point of Rs 11 lakh.
Demand remains robust, sustaining steady growth even with a high base. The consistency of this growth is remarkable, particularly in the SUV segment, where one in every two vehicles sold in Q2 was an SUV, despite rising price points. The market is also shifting from a dominance of two fuel types to a multi-powertrain market.
Maruti Suzuki, a leader in both the sub-Rs 10 lakh and Rs 10 lakh to Rs 20 lakh segments, credits its success to its new range of SUVs, including the Jimny, Fronx, Grand Vitara, and Brezza. The company currently boasts a 24% market share in the SUV segment and its premium outlet, Nexa, consistently ranks as either the second or third brand in the competitive passenger vehicle market.
Srivastava predicts that the market is heading towards the 4.1 million units mark, representing a growth of 5-7 percent.
In the first half of FY24, India maintained its position as the third-largest player in the global passenger vehicle market, and it is likely to retain this position for the entire year. This signifies not only an increase in scale but also the evolution of a more segmented market.
