The PV (Passenger Vehicles) industry is performing at its all-time high. However, after three years of continuous growth, the industry might have moderation in the upcoming time. The automobile industry is going through a lot of parallel shifts. There is an increasing demand for SUVs and high-feature cars. India has more people with high incomes and a good lifestyle. Thus, they are now preferring cars that can provide them with the desired comfort. Let us understand the current scenario of the PV industry below.
How Will PV (Passenger Vehicles) Industry Sustain Its Growth In FY25?
The PV (Passenger Vehicles) industry is facing notable shifts. The automakers are currently providing huge discounts on their best-selling models. These discounts are also going up to Rs. 2 lakhs. However, these discounts are major because of the increasing inventory. Automobile companies now have inventory in abundance. FADA estimates show that the PV industry’s inventory level will be from 62 days to 67 days.
Car was a big dream in earlier times. However, it is now comparatively easy as more people are having their car at a young age. The lifestyle of the consumers is also having a shift. People prefer a high-quality lifestyle. They now prefer SUVs and electric vehicles. The youth is shifting towards it at a faster speed. The highways and roads are developing and becoming better over time. Thus, it leads to more attraction of the consumer towards these high-value vehicles.
According to sources, there is an 8.6% growth in the industry by FY23. The utility segment had a 17% CAGR. The industry had continuous growth in the last three years. It expects to go on moderately. The expectations are that growth will remain below 5%. It is a high chance that the industry will not have a steeper growth this year. There are a lot of reasons that contribute to more inventory and less sales. Even after the reduction in sales, the industry has made good revenue.
The main reason behind the falling demand is the increasing heat. The summer heatwaves led to less footfall in the showrooms. People avoided many of the outdoor activities due to excessive heat. They preferred staying in their home. There are a lot of policies in favour of the auto industry. As it will play a crucial role in India’s goal of 2047 making India a developed country. The auto industry is currently focussing on electric and gas-based vehicles more. Stay tuned for more information on our website.