Indian Economy News

Passenger vehicle sales are expected to grow by 9-10% in 2024: Crisil Ratings

  • IBEF
  • March 1, 2023

According to Crisil Ratings, India's passenger vehicle sales are expected to grow about 9-10% in the fiscal year 2024, which is roughly 20% above pre-pandemic peak levels, as strong demand, and easing chip shortages prop-up the world's fourth-largest car market.

Crisil Ratings said that because of higher incomes, a strong order book, and an increased demand for sport utility vehicles (SUVs) will support domestic growth, helping vehicle sales touch a record of 5 million units in the next fiscal year. SUVs are expected to nearly double their share in overall domestic sales to 55% in FY24 from about 28% in FY18, Mr. Arjun Sethi, Senior Director, Crisil Ratings said. Sharper focus by original equipment manufacturers (OEMs) on SUVs, including compact SUVs, fuelled by customer preference is driving growth, he added.

According to Crisil, strong demand should mitigate the blow to auto part manufacturers from higher costs brought on by new rules that require all vehicles to meet emission goals in real-world settings in addition to being tested in a lab setting.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.