Some are sceptical about the sustainability of high growth rates ahead. But what remains underappreciated is the growth lever available to the industry in the form of premium product mix. Car buyers are now ditching the entry level models and opting for new premium models.
Maruti Suzuki India announced that its model Fronx has surpassed the 1 lakh sales milestone in the domestic passenger vehicle segment within just 10 months, setting an industry record. Launched on April 24, 2023, Fronx contributed significantly to Maruti Suzuki s SUV segment share, doubling it to 19.7% in 2023 from 10.4% in 2022.
The passenger vehicle segment is expected to reach a new peak this fiscal year, selling over 4 million units, with SUVs driving the demand. Sales of passenger vehicles have increased from 2.5 million units a decade ago to 3.8 million units in the last fiscal year. This year, industry experts predict sales to reach 4.1 million units, with SUV sales projected to be around 1.9 million units. The share of hatchbacks and sedans in the sales mix has declined, while SUVs continue to be strong growth drivers. Some manufacturers have exited the PV segment, reducing the number of brands in the market.
The passenger vehicle segment is expected to reach a new peak this fiscal year, selling over 4 million units, with SUVs driving the demand. Sales of passenger vehicles have increased from 2.5 million units a decade ago to 3.8 million units in the last fiscal year. This year, industry experts predict sales to reach 4.1 million units, with SUV sales projected to be around 1.9 million units. The share of hatchbacks and sedans in the sales mix has declined, while SUVs continue to be strong growth drivers. Some manufacturers have exited the PV segment, reducing the number of brands in the market.