India’s car exports showed robust growth in the first quarter of 2023-24, totaling 180,483 units, marking an 18.6% increase compared to the previous year. This surge was driven by strong demand in key international markets, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
Meanwhile, domestic car sales remained steady at 1.026 million units, reflecting a modest 3% year-on-year growth. Vinod Aggarwal, President of SIAM, emphasized the need for cautious interpretation of monthly data, expressing optimism for improved growth in the coming months with favorable monsoon forecasts and the approaching festive season.
The decline in domestic sales was primarily observed in smaller car segments, including sedans and hatchbacks, which saw a 17.5% year-on-year decrease to 341,293 units in June, as reported by SIAM.
Addressing concerns raised by dealers about high inventory levels, Aggarwal assured that the market maintains a healthy balance between supply and demand, with companies prepared to adjust production accordingly.
Regarding electric vehicles (EVs), Aggarwal urged patience in evaluating the segment’s performance, acknowledging recent slowdowns but anticipating growth post-budgetary incentives.
The recent policy change by the Uttar Pradesh government, eliminating registration taxes on hybrid cars, sparked differing viewpoints within the industry regarding the focus between hybrid and electric vehicles.
#ITCNewsUpdates #BreakingNews #IndiaCars #ExportGrowth #DomesticSales #AutomotiveMarket #SIAM