Indian auto industry grew 19% to Rs 10.2 lakh crore in FY24 – MASHAHER

The Indian automobile industry grew 19% year-on-year (y-o-y) in value at Rs 10.2 lakh crore in FY24, according to a report by management consulting services firm Primus Partners.

The value stood at Rs 8.6 lakh crore in FY23.

As per the report, there was a rise of 39% y-o-y in overall value for the sport utility vehicle (SUV) and utility vehicle (UV) segments. Their volume increased by 23% y-o-y and price by 16% y-o-y. The average price increase was due to a general rise in prices; shift to higher segments, hybrids and automatics; popularity of sunroof models and electric vehicles (EVs).

The passenger vehicle (PV) segment saw a decline of 9% y-o-y in volumes due to a slight price increase, resulting in a 4% value drop. In the two-wheeler segment, India witnessed a 10% y-o-y increase in volume and 13% y-o-y in value, while the three-wheeler segment grew by 16% y-o-y in volume and 24% y-o-y in value. The commercial vehicle (CV) segment rose by 3% y-o-y in volume and 7% y-o-y in value.

“India is at the forefront in leading the global automobile race, bypassing lower-priced products and creating more value in feature-rich, higher-priced vehicles. Consumer preferences and robust economic fundamentals are drivers of this transformation in the Indian automobile industry. Significantly, the UV and SUV segments are becoming a preferred choice for most Indian consumers,” said Anurag Singh, Managing Director, Primus Partners.

Following are some of the highlights of the report.

• While India is the third-largest country in terms of vehicles registered, behind China and the USA, it trails countries like Japan and Germany in value terms. The average price of vehicles in India is lower than that of many advanced countries.
• The value of the Indian automobile industry is growing at a faster rate than volume. Indians prefer higher, more expensive models across segments, and the average price of vehicles is increasing.
• India is the number one producer of two-wheelers with over 20 million units produced last year. The two-wheeler segment dominates in volume with 76% share, its value share is 18%.
• The commercial vehicle segment accounts for 18% of the industry value with a significant contribution from higher-priced vehicles such as trucks and speciality vehicles.