However, even as the volumes are expected to be sluggish, the strong growth story in value terms seen last year is expected to continue this year, it said. By production volume, India’s automobile market advanced 10%, but in value terms, it grew 19% to INR 10.6 crore in FY24 over INR 8.6 lakh crore in FY23.
“The value growth last year was led by the growing share of utility vehicles in the overall passenger vehicle sales, increasing mix of electric vehicles across the segment and rising demand for variants that come with sunroof and automatic transmission. We expect the aforementioned trend to continue in the current year,” said Anurag Singh, managing director, Primus Partners, told ET. He expects the overall production volumes in the current year to be in low single digits as demand has cooled off due to last year’s high base, heat wave and other factors.
Among all the segments, the value growth of 39% seen in the UV segment was the highest, followed by a 24% growth in three wheelers, 13% in two wheelers and 7% in commercial vehicles. Passenger car segment which declined 4% in value in line with a decline of 9% in its production volume was the only outlier.
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