| FY19
| FY20
| FY21
| FY22
|
Passenger Cars
| 22,18,489
| 16,95,436
| 15,41,866
| 14,67,056
|
Utility Vehicles (UVs)
| 9,41,474
| 9,45,959
| 10,60,750
| 14,89,178
|
Even though the growth is only marginal, up to 1.5%, the trajectory is significant. The gap between the cars and UVs was 12,77,015 units in FY19 when cars led the PV segment with 22,18,489 units and UVs clocked only 9,41,474 units.
After three years the gap has narrowed with the steady fall in the sales of passenger cars, comprising hatchbacks and sedans, and rise in the share of the UVs. Experts suggest that the preference has been high particularly for SUVs, due to the lowering age group of the buyer, their preference for innovation, high technology and safety features. Moreover, India has seen about two dozen new UV launches in the past two years, while only a few new cars. With this, the price difference between compact UVs and small cars has comparatively reduced further attracting the consumers towards the former with a variety of options at varied price points.
The depressed rural market, where the first-time buyers generally opt for entry-level cars, is another factor that adversely affected their sales. Rural and semi-urban recovery has been slower than the urban markets owing to the substantial fall in the amount of disposable income with the people there.
In FY22, passenger car sales were at 14,67,056 units, about 4.8% lower than the 15,41,866 units in 2020-21. In the pre-COVID year of FY19 car sales were at 22,18,489 units.
The utility vehicles sales in FY22 were at 14,89,178 units, marking 40.3% growth over the 10,60,750 units sold in FY21. The growth gap has widened when compared to FY20.
According to ratings agency CRISIL’s latest forecast, UVs will outperform other segments in the market between FY21 and FY26 and will log a CAGR of 14-18%, while small cars may grow 4-6%. Further, it also expects the share of the UV market to increase gradually to 51-53% in FY26 from around 39% growth seen in FY21.
“Consumer preference has shifted towards SUV-type design — aspirational purchase before migrating to a larger SUV, taller driving stance, a more upright and sheer road presence, higher ground clearance, larger tyres, and the flexibility and maximisation of space, etc,” said the report.
India UV market share to increase to 51-53% soon from around 39% in FY21: Report
Research by CRISIL shows that the share of UVs in the overall domestic passenger vehicle (PV) segment increased to 48% in the 9MFY22 from 15% about two decades ago (FY02), around 3,300 bps rise.
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Now one in every five cars sold in India is made by Indian OEMs Tata, Mahindra
The Indian OEMs had clocked 14.45% market share in FY19. It dropped to 11.8% in FY20 and rose to 14% in FY21. In the just concluded FY22 the market share of Mahindra & Mahindra, Tata Motors jumped to about 19.5%.However, it is way behind the 24% of FY12.
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