New Delhi: The Indian automobile industry witnessed a robust 19% growth in FY24, reaching a valuation of Rs 10.22 lakh crore, according to a report released on Wednesday. This surge was significantly driven by the utility and sports utility vehicle (SUV) segments, which saw substantial development throughout the year.
The industry experienced a 10% increase in overall volume. Notably, the UV and SUV market recorded a remarkable performance with a 23% rise in volume, a 16% increase in price, and a 39% growth in overall value.
"India is at the forefront of the global automotive competition, focusing on producing higher-value, feature-rich vehicles while moving away from lower-cost options," said Anurag Singh, Managing Director of Primus Partners. "This shift in the Indian auto sector is fueled by consumer demands and strong economic foundations. It's noteworthy that most Indian consumers are increasingly opting for the SUV and UV sectors."
In contrast, the passenger vehicle (PV) segment faced challenges, experiencing a 4% reduction in value and a 9% decline in volume, despite a modest increase in prices.
This trend highlights the evolving preferences of Indian consumers, who are leaning towards more premium and feature-loaded vehicles in the UV and SUV categories, contributing significantly to the industry's overall growth.
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