Despite price hikes, car sales will cross the 4 million mark this year on strong demand
According to The Economic Times (ET), as long as consumer demand is robust throughout the current festive season, car sales are predicted to break previous records for the current calendar year (CY) by roughly 250,000 units. This is true despite the recent price hikes in care prices by manufacturers.
This calendar year, automakers anticipate selling between 4.10-4.17 million cars, including vans and utility vehicles. Despite the high base from the previous year, this represents an 8-10% increase over the sales recorded in CY22. The car sales increased by 23% last year. Further, it was claimed that the stronger-than-expected demand for more expensive sport utility vehicles (SUVs) is the cause of the increase in sales.
The first ten months of this year have seen the sale of 3.47 million cars in the local market until October, which is 9% higher than the 3.19 million cars sold in the same period last year.
Among the key factors driving sales are new models such as the Maruti Suzuki Fronx, Hyundai Exter, and upgraded Kia Seltos. Currently, almost 48% of all car sales are made up of SUVs. The previous year, its proportion was 43%.
According to the report, there would be a 21% increase in car deliveries between Dhanteras on Friday and Bhai Dooj on Tuesday, with an estimated 55,000-57,000 vehicles being delivered. Deliveries during this time last year totalled 45,000 units.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.