Indian auto industry grows 19% in FY24, reaching Rs 10.22 lakh crore, driven by SUV surge and evolving consumer preferences.
The Indian Auto industry experienced a robust 19% growth in FY24, reaching a valuation of Rs 10.22 lakh crore. This impressive surge was significantly driven by the utility and sports utility vehicle (SUV) segments, which saw substantial development throughout the year.
Highlights:
- SUV Market Boom: UV and SUV market recorded a 23% rise in volume.
- Consumer Shift: Increase in demand for higher-value, feature-rich vehicles.
- Industry Valuation: Indian auto sector valued at Rs 10.22 lakh crore.
SUV Market Driving Growth
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.”
Challenges in Passenger Vehicle Segment
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.
Changing Consumer Preferences
This trend highlights the evolving preferences of Indian consumers, leaning towards more premium and feature-loaded vehicles in the UV and SUV categories. This shift is significantly contributing to the industry’s overall growth.
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