Electric Car Sales Surge and SUVs Lead Growth in Indian PV Market: CareEdge Report

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Electric Car Sales Surge in India, SUVs Lead Market Growth: CareEdge Report

Team FS

26/Jun/2024

Key Points:

Electric Vehicle Growth: Electric car sales in India projected to reach 1.3-1.5 lakh units in FY25, marking a significant increase from FY24.
SUV Popularity: SUV sales surged by 22.4% in FY24, continuing to dominate the passenger vehicle segment due to utility and safety preferences.
Challenges in Entry-Level Segment: Entry-level vehicle demand remains subdued amid rising costs and consumer shifts towards premium models.

The latest CareEdge Rating report forecasts robust growth in India's automotive sector for FY25, with notable shifts in both electric vehicle adoption and consumer preferences within the passenger vehicle (PV) segment. According to the report, electric car sales are set to escalate to 1.3-1.5 lakh units in FY25, a substantial rise from the 90,432 units sold in FY24, reflecting a staggering 90% year-over-year growth. This surge underscores the increasing penetration of electric vehicles in the Indian market, driven by environmental concerns and governmental incentives.

Simultaneously, the PV industry is expected to experience moderate growth, with sales volumes anticipated to expand by 3% to 5% in FY25, following a 7.4% increase in FY24. The report highlights a significant trend towards Sports Utility Vehicles (SUVs), which witnessed a 22.4% sales surge in FY24. This preference shift among consumers towards SUVs, prized for their utility and perceived safety benefits, is expected to persist, solidifying their dominance in the market.

However, the PV sector faces challenges, particularly in the entry-level vehicle segment, where demand is likely to remain subdued. Factors contributing to this include escalating costs of entry-level models and changing consumer preferences favoring premium and high-end vehicles. Economic conditions and demographic shifts play pivotal roles in shaping these consumer behaviors, influencing purchasing decisions across the automotive market.

In conclusion, the CareEdge Rating report paints a dynamic picture of India's automotive landscape for FY25, characterized by robust growth in electric vehicle adoption and sustained popularity of SUVs within the PV segment. As the market evolves, stakeholders must navigate challenges and capitalize on opportunities presented by shifting consumer preferences and regulatory landscapes to foster sustainable growth and innovation in the automotive industry.

Also Read : BSE Sensex Surges 0.8% to New Record, Driven by Reliance and Bharti Airtel Gains

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Electric Car Sales Surge in India, SUVs Lead Market Growth: CareEdge Report

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