After posting record-breaking volumes in 2023, Indian automobile industry is driving into the new year aware of a lurking moderation in sales growth but ready to embrace green technologies, led by electric vehicles. Passenger vehicle sales are expected to cross 40 lakh units this year and prices are set to rise from January. Veteran industry leader and Maruti Suzuki India Chairman RC Bhargava said the sales are expected to moderate a bit next year compared to 2023. He noted that the revival of the small car segment is necessary for the faster growth of the industry. The share of entry-level cars in the passenger vehicle sales which stood at around 14 per cent in 2018-19 has reduced to around 4 per cent in the April-October period this year. “As far as Maruti Suzuki is concerned, I believe that we will have higher growth than the industry,” Bhargava told PTI.While being positive on the growth of Electric Vehicle (EV) sales next year, he noted that the focus should be towards all the green technologies which help in meeting the carbon neutrality goals.

 

Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said the sales outlook remained positive for the industry going into next year. “The overall outlook for the Indian automobile industry in 2024 looks good which can be attributed to the all-round economic growth of the country, which is also enabled with the conducive policy environment of the Government,” he said. On EVs gaining a foothold next year, he said the industry is likely to see continued increase in the share of EVs in all the vehicle segments. “Though this phase of the FAME Scheme is scheduled to conclude in March 2024, we as an industry are optimistic that Government of India will introduce another version of FAME Scheme beyond March 2024,” Menon said.

 

Continuation of the FAME Scheme after March 2024 will not only help the consumers but would also enable the industry to further scale up and provide a wide range of products to the consumers, he added. Federation of Automobile Dealers Associations President Manish Raj Singhania said the automobile sector is poised for steady growth next year with an expected low single-digit growth in passenger vehicles and high single-digit growth in two wheelers. The outlook for green technologies and electrification in the automotive sector remains promising, Singhania said when asked about the outlook for the EV segment. Automotive Component Manufacturers Association of India Director General Vinnie Mehta said the auto components sector is set to experience a continued transition towards electric vehicles, with increased emphasis on safety, prompted by the introduction of Bharat NCAP.