After posting record-breaking volumes in 2023, Indian automobile industry is driving into the new year aware of a lurking moderation in sales growth but ready to embrace green technologies, led by electric vehicles (EVs). Passenger vehicle sales are expected to cross 40 lakh units this year, and prices are set to rise from January.

Veteran industry leader and Maruti Suzuki India Chairman R C Bhargava said that the sales were expected to moderate a bit next year compared to those of 2023. 

He noted that the revival of the small car segment was necessary for the faster growth of the industry. 

While being positive on the growth of EV sales next year, he noted that the focus should be towards all the green technologies which help in meeting the carbon neutrality goals. 

The share of entry-level cars in the passenger vehicle sales which stood at around 14 per cent in 2018-19 has reduced to around 4 per cent in the April-October period this year. 

Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said that sales outlook remained positive for the industry going into next year. 

“The overall outlook for the Indian automobile industry in 2024 looks good which can be attributed to the all-round economic growth of the country, which is also enabled with the conducive policy environment of the government,” he said. 

Federation of Automobile Dealers’ Associations President Manish Raj Singhania said that the automobile sector was poised for steady growth next year with an expected low single-digit growth in passenger vehicles and high single-digit growth in two wheelers.