In FY24, the Indian automobile industry expanded by 19% reaching Rs 10.22 trillion. This growth was driven by significant growth in the utility and sports utility vehicle (SUV) segment, according to a report. The volume of the industry grew by 10% during the year, as highlighted by management consulting firm Primus Partners.

The report noted a notable increase of 23% in volume and 16% in price in the UV and SUV segment, resulting in an overall value growth of 39% in the past fiscal year. This growth in average prices was influenced by general price rises, a shift towards higher segments, adoption of hybrid and automatic vehicles, popularity of sunroofs, and increasing adoption of electric vehicles (EVs).

Anurag Singh, Managing Director, Primus Partners, remarked, "India is leading the global automobile race by focusing on higher-value, feature-rich vehicles, surpassing lower-priced alternatives. Consumer preferences and strong economic fundamentals are driving this transformation in the Indian automobile sector, with UVs and SUVs emerging as favoured choices."

However, the passenger vehicle (PV) segment saw a 9% decline in volume, leading to a 4% drop in value due to slight price increases. Meanwhile, the two-wheeler segment grew by 10% in volume and 13% in value, the three-wheeler segment increased by 16% in volume and 24% in value, and the commercial vehicle segment rose by 3% in volume and 7% in value.

Despite India ranking third globally in terms of vehicles registered, trailing China and the US, its value ranking places it behind countries like Japan and Germany. The report highlighted that India continues to dominate as the top producer of two-wheelers globally, with over 20 million units manufactured last year. Two-wheelers hold a 76% share in volume and an 18% share in value within the industry.

Overall, FY24 was characterised by robust demand recovery post-pandemic, supported by eased supply chain constraints, contributing to a strong performance in the global automobile sector. (Source: ET)