Automakers anticipate record-low sales after 2023; Ahead of further EV debuts in 2024, be ready

 Automakers anticipate record-low sales after 2023; Ahead of further EV debuts in 2024, be ready

Automakers anticipate record-low sales after 2023; Ahead of further EV debuts in 2024, be ready

India's car sector is expected to reach new highs in 2023; yet, it is preparing for the switch to electric cars and worries about a slowing in sales growth.

The Indian car sector, which is expected to reach record highs in 2023, is ready for a green shift with the introduction of electric vehicles, but it is concerned that sales growth may slow down.

The Indian car industry is aware of a potential slowdown in sales growth in the next year, but it is still planning to adopt green technology, driven by electric vehicles, after recording record-breaking volumes in 2023.

Sales of passenger cars are predicted to surpass 40 lakh units this year, and starting in January, prices are anticipated to increase. Sales are anticipated to be somewhat lower in 2024 compared to 2023, according to RC Bhargava, Chairman of Maruti Suzuki India and an experienced leader in the sector.

He said that the industry's fast expansion depends on the compact vehicle category experiencing a renaissance. From April to October of this year, the percentage of passenger vehicle sales that were made up of entry-level automobiles fell to around 4% from about 14% in 2018–19. "As far as Maruti Suzuki pertains to, I believe our growth will be higher than the industry," Bhargava said to PTI. He expressed optimism about the increase of electric vehicle (EV) sales in the next year and said that the emphasis should be on all green technologies that contribute to the achievement of carbon neutrality targets. Rajesh Menon, director general of the Society of Indian Automobile Manufacturers (SIAM), predicted a strong year for industry sales in 2019.

"The general situation for the Indian automobile industry in 2024 looks good, which can be due to the country's all-round economic growth, which was also made possible by a favorable policy environment from the government," he said.

Speaking about the penetration of EVs in the next year, he predicted a steady rise in the proportion of EVs in all car classes. "As an industry, we are optimistic that the Government of India will introduce another edition of the FAME scheme after March 2024, even though this phase of the scheme is scheduled to end in March 2024," Menon said.

According to him, keeping the FAME program in place into March 2024 would benefit customers as well as the industry's expansion and ability to provide a greater selection of goods to buyers. Manish Raj Singhania, President of the Federation of Automobile Dealers Association, said that the auto industry is anticipated to develop steadily in 2019 with low single-digit growth anticipated for passenger cars and high single-digit growth anticipated for two-wheelers.

When asked about the future of the EV market, Singhania said that green technology and electrification in the car industry still have a bright future. India is expected to undergo a continuous transition towards electric cars with a higher focus on safety, according to Vinnie Mehta, Director General of the Automotive Component Manufacturers Association of India. This change is expected to be spurred by the implementation of NCAP.

"As a result of this change, original equipment manufacturers (OEMs) are now offering more safety features and integrating advanced driver assistance systems (ADAS) more frequently," he said. SUVs, this season's hot commodity, could continue to grow in popularity in 2019. This year, the SUV share is predicted to be around 49% for the industry and 60% for Hyundai. According to Tarun Garg, COO of Hyundai Motor India, by 2024, the company's share would surpass 60% and the SUV segment's share will surpass 50% of the industry.

Shailesh Chandra, the managing director of Tata Motors Passenger Vehicles, said that the business would keep introducing new ICE and EV cars. "We'll unleash potential by integrating the new Sanand facility into our industrial footprint. By expanding our line of compressed natural gas (CNG) vehicles and electric vehicles (EVs), we want to promote the wider penetration of emission-friendly technologies," he said, noting that the expansion of the EV charging infrastructure is still crucial to the widespread acceptance of EVs. The roadblock still exists.

According to him, Tata Motors has started an open partnership with significant charger manufacturers in order to expedite the development of chargers and provide EV purchasers a better experience. Because of the expanding infrastructure for charging, the favorable legislative climate, and increased consumer demand, domestic competitor Mahindra & Mahindra is likewise aiming to speed its electrification initiative. "When Born Electric products begin to significantly enter the Indian market, we will witness a turning point." Rajesh Jejurikar, Executive Director & CEO of Mahindra & Mahindra Auto & Farm Sector, said that M&M would launch its born electric portfolio in 2025.

He said that overall, automakers anticipate the sector to be active because of the promising macroeconomic environment. Mercedes-Benz India predicts growing EV adoption in the premium market. The tipping point is still a few years off, however. Mercedes-Benz India's MD and CEO, Santosh Iyer, said that internal combustion engines would be provided to clients. In contrast to internal combustion engine (ICE) cars, battery electric vehicles (BEVs) provide hassle-free ownership and advantages that must be argued for. Despite supply-chain delays, he said that the business expects this year to be its greatest year ever in line with industry growth.

Another high-end automaker, Audi, is thrilled about the electrification of its line in India. "As a brand, we are committed to enhancing the electric vehicle infrastructure in the country and will continue to invest in expanding our charging network," said Balbir Singh Dhillon, the CEO of Audi India. Regarding the prognosis for 2024, he said, "The luxury car segment saw a strong performance in 2023, driven by ongoing demand." In terms of the luxury automobile segment's growth prospects in 2024, we are optimistic.