Auto industry body, the Society of Indian Automobile Manufacturers aka SIAM announced on Thursday that India’s passenger vehicle sales hit a record high in the fiscal year 2022-23 as chip shortages eased and customers spent more money on SUVs.
What Happened? Per a Reuters report, automakers focused on producing SUVs due to high consumer demand despite rising inflation. Meanwhile, sales of entry-level vehicles faced challenges.
SIAM President Vinod Aggarwal tells the news wire service that SUV sales, accounting for over 50% of total passenger vehicle sales in the year, were “much higher than expected.”
He added that he expects the Indian auto industry to perform well in 2023-24 if the economy remains strong and monsoons are good since global recessionary concerns have eased.
SIAM recorded sales to dealers and stated that passenger vehicle volumes for the year rose nearly 27% to 3.9 million units in the year ended March 31, with sales of utility vehicles standing at over 2 million.
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Sales rose due to buying before the implementation of new fuel emission norms and strong demand during the festival season.
Additionally, two-wheeler sales, an indicator of the financial health of India’s lower- to middle-income households, rose 16.9%. However, sales of small entry-level cars fell 57% to 252,000 in the last fiscal year from its 2016-17 peak of 583,000 units.
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