India’s auto industry surges to Rs 10.2 lakh crore in FY24, at 19%

India’s automobile industry surged to Rs 10.2 lakh crore in value during FY24, at a rate of 19 per cent on a year-on-year basis, a report by the business consultant firm Primus Partners has revealed. The value of the industry was at Rs 8.6 lakh crore in FY23.

SUV & UV VROOMING ON

Sport utility vehicles (SUV) and utility vehicles (UV) saw high overall growth in value, with a 39 per cent increase on a year-on-year basis. While prices climbed by 16 per cent, volume in the segment grew by 23 per cent year-on-year.

Vehicles in the segment became costlier owing to several factors. These include consumers switching to more expensive options as electric vehicles (EV), hybrids or automatic models.

The rise in prices can actually be noticed across all segments and can overall be attributed to the fact that Indians go for higher, more expensive models across all segments, the report said.

TWO-WHEELERS LEAD RACE

The two-wheeler segment remains strong, leading in volume with a staggering 76 per cent share and 18 per cent value. The segment saw a 13 per cent hike in value and a 10 per cent jump in volume on a year-on-year basis. India is the largest producer of two-wheelers, manufacturing more than 20 million units last year.

Growth was also visible in the three-wheeler segment. The segment expanded by 24 per cent in value and 16 per cent in volume on a year-on-year basis.

In terms of volume, passenger vehicles (PV) saw a drop of 4 per cent in value and 9 per cent in volume on a year-on-year basis, mainly driven by price rise.

The growth for commercial vehicles (CV) was 7 per cent in terms of value and 3 per cent in terms of volume on a year-on-year basis. Commercial vehicles comprise 18 per cent of the industry’s value, mainly owing to trucks and speciality vehicles.

INDIA THIRD IN VEHICLE REGISTRATION

The report noted that, on an average, the cost of vehicles in India was cheaper than many advanced countries. India is currently the third-largest nation as far as number of registered vehicles is concerned, behind only China and the United States. In terms of value, however, India is behind nations as Germany and Japan.

Value of the Indian automobile industry, however, is growing rapidly, the report said, at a rate quicker than the volume.