The auto industry's 'speed' has been slow for the last 4 years, will SUVs help companies sail through?
Every month auto companies release sales figures, the figures for the month of December have started coming out. Every month the sales of some companies increase and the sales of some companies go down, this cycle of ups and downs continues like this. But now a recent report has shocked everyone, according to this report, the growth rate of car sales in 2024 has come down to about 5 percent, which is the slowest pace of expansion in the last four years.
The auto industry sales stood at 43 lakh units in 2024 as against 41.1 lakh units in 2023. Due to the increasing demand for SUVs among customers in the Indian market, the SUV segment accounts for about 54 per cent of the sales.
Many companies say that 5 percent growth is still positive for the auto industry. The Times of India report mentions that the pressure on companies is likely to continue in the new year as well. Demand for new vehicles remained sluggish in 2024, especially at the end of the year, companies resorted to price cuts and bumper discounts to increase sales.
Why is there a decrease in demand?
Auto companies are trying to meet the safety and emission requirements, due to which car prices have increased in the last few years. Sales have been affected due to the increase in price.
This year, Maruti Suzuki has sold the highest number of vehicles in the rural market. Maruti Suzuki's Senior Executive Officer (Marketing and Sales) said that 17.9 lakh units were sold in 2024. Whereas last year the sales figure was 17.4 lakh units.
Sales growth is sluggish
The total sales of the auto industry in 2020 was 24.3 lakh units which increased to 30.8 lakh units in 2021. Sales increased by 27 percent in 2021, total sales stood at 37.9 lakh units in 2022. Compared to 2021, there was a total increase of 23 percent in sales in 2022.
In 2023, the auto industry's sales stood at 41.1 lakh units. Sales did increase in 2023 as compared to 2022, but the increase was only 8.3 percent. In 2024, sales increased by only 5 percent as compared to 2023.