look news india
Mumbai: The country's auto industry is likely to see price hikes limited to an average of 5 per cent in the current fiscal year as a result of sluggish demand. Vehicle prices saw an average increase of 8 per cent in the previous fiscal year.
The growth rate in terms of volume is expected to be slow in the current financial year but the growth rate of the auto industry is expected to remain strong in terms of value. The size of the auto industry, which was Rs 8.60 lakh crore in FY 2023, is expected to grow by 19 per cent to Rs 10.60 lakh crore in FY 2024. According to a research report, production volumes saw a growth of ten per cent in FY 2024.
The industry size has seen a significant growth in the last financial year, driven by increased sales of utility vehicles and sport utility vehicles.
Looking at the vehicle registration figures in the country, India's automobile market is emerging as the third largest market after China and the US.
The average price of vehicles in India remains low compared to most developed countries. The global auto industry is projected to grow by 12 per cent in terms of sales in 2023. The utility vehicle and sports utility vehicle segments are expected to grow by 23 per cent in terms of volume and 39 per cent in terms of value in FY2024 as a result of high segment preference by consumers.
Talking about two-wheelers in India, there has been a growth of 10 percent in terms of volume while the average price has increased by three percent. A total of 28 crore vehicles were produced in India in the financial year 2024, of which 76 percent were two-wheelers.