During the festive period between Onam and Bhai Dooj, the Indian car industry, driven by SUVs, achieved a record revenue of Rs 1.3 lakh crore.
Companies sold a record 11.4 lakh vehicles per day, or slightly less than 13,000 units per day, as the industry’s production returned to normal following the Covid shortages and consumer demand remained high. Last year’s festive turnover came to a total of Rs 85,700 crore.
According to industry insiders who spoke with TOI, the average price per unit was around Rs 11.5 lakh, compared to Rs 10.5 lakh the previous year. These figures, which are consistent with the positive trends seen over the majority of the last two years, demonstrate that buyers are still in the market for new, feature-rich cars.
Businesses, however, are wary about future demand since they anticipate more muted wholesales in November and December as the sector monitors inventory levels as the year draws to a close.
“We are overjoyed with the results, and the industry undoubtedly benefited from us having more days over this festive season. Better production as supply issues subsided and demand remained high also contributed to the record numbers, according to Maruti Suzuki director of marketing and sales Shashank Srivastava.
According to Srivastava, the industry’s average automobile realization increased significantly as a result of the popularity of SUVs. “In 2023, the average car price reached a record of Rs 11.5 lakh, contributing to the industry’s Rs 1.3 lakh crore income. We have profited greatly at Maruti as we lead the market in SUVs and continue to grow,” Srivastava stated.
The automotive sector experienced a robust demand curve following the lifting of COVID-19 limits in late 2021; but, supply constraints resulting from shortages of semiconductors, prohibitions on specific suppliers coming from China, and the conflict in Ukraine had a severe impact.
But lately, supplies have been returning to normal, particularly for the major players who have also created new supply routes. “I predict that the auto industry will have grown by about 8% this year compared to last.” Tarun Garg, COO of Hyundai India, stated that the company will end the year with growth of between 8.5 and 9%, with SUVs making up a significant 60% of the rise.
