Indian car market to drive past 2 million peak in H1 FY24

The Indian passenger vehicle market is set to scale the 2 million vehicle sales peak for the first time ever in half yearly sales in FY24. 

In what has been a record-breaking year so far - every month of this financial year has witnessed the highest-ever monthly sales for their respective months. 

Industry players say the dispatches for the month of September are expected to be around 3.6 lakh to 3.62 lakh units - which will be a new peak again for the industry. This is a growth of 1-2 percent over last year’s high base of 3.55 lakh units. 

Shashank Srivastava, Senior Executive Officer, sales and marketing at Maruti Suzuki says the financial year 2023-24 may very well turn out to be a transformational year for the industry.  

"The industry is maturing very fast - from every possible parameter - price point, size of vehicle, type of powertrains the customer is choosing and all this despite sustained price increase over the last few years. It could be one of the most defining years for the industry," said Srivastava. 

This strong view is despite the fact that the market is likely to grow by just 7% in the first half of FY24. Srivastava claims that it is the qualitative aspect of the market which is transforming.  

To be sure - while the stock in the market is around 30-35 days - the value of stock in the system is over Rs 36,000 crore, with an average price point of Rs 11 lakh. 

"The demand has been strong and the steady growth continues despite the high base. Sustained high numbers month after month have never been seen before. The consistency of growth seems to stand out, the SUV growth stands out, for Q2, one in every two vehicles sold was an SUV, and this is despite price points moving up. The market is also transitioning from two dominant fuel types to the multi-powertrain market," he added.  

Maruti Suzuki is not only a leader in the sub-Rs 10 lakh market, but also the leader in the Rs 10 lakh to Rs 20 lakh market, thanks to the new range of SUVs - Jimny, Fronx, Grand Vitara and Brezza.

The company today is the number one player in the SUV space with a 24% market share and its premium outlet Nexa has been consistently either number 2 or number 3 brand in the highly competitive passenger vehicle space. 

Srivastava says - the market is on course for 4.1 million units mark which is a growth of 5-7 percent. 
 
"In the first half of FY24, India retained its number 3 position in the global passenger vehicle market, and it may very well retain its spot for the entire year. So the market is not only gaining scale advantage but also evolving into a more segmented market," added Srivastava.