The Indian car industry witnessed a surge in sales during the festive period between Onam and Bhai Dooj, achieving a record turnover of Rs 1.3 trillion, according to a report by The Times of India (TOI). Driven by consumer demand, companies retailed 1.14 million vehicles, averaging nearly 13,000 units daily. This success reflects the car industry’s recovery after Covid-19-related disruptions. During the same period last year, the Indian car industry recorded a turnover of Rs 85,700 crore.
The Indian car market continues to scale new peaks. Not only are the volumes hitting a new high every month of this fiscal year, but the average ticket price is also moving up.
The growing economy, rising disposable income and younger population has meant that the market is maturing fast and the cars are getting safer and are high on tech. With improved semiconductor supplies this year, more Indians fulfilled their dream of owning a personal vehicle.
SUVs drove demand during this festival season, contributing significantly to the year’s turnover. Maruti Suzuki highlighted the growing consumer inclination toward feature-loaded SUVs. The average price for these vehicles this year was Rs 11.5 lakh, up from Rs 10.5 lakh last year.
Even after Covid-19-related restrictions were lifted in 2021, the car industry faced challenges due to supply constraints, specifically semiconductors. These restrictions were caused by the war in Ukraine and curbs on certain supplies from China. However, the supply is normalising now, especially for mainstream players, and the industry is jumping back with new supply channels available for automobile manufacturers.