FADA is betting big on new car launches, positive consumer sentiments, high demand for SUVs, and improved availability of cars for short and long-term
In the light of record sales performance of the passenger vehicle segment in India in 2023, automobile dealers are hoping for the momentum to continue in 2023. The Federation of Automobile Dealers Associations (FADA) on Monday in a release projected that passenger vehicle sales in the country will remain on a positive trajectory in 2024. This comes after the Indian automobile industry registered sales of more than 41 lakh passenger vehicles in 2023.
The FADA has projected a cautiously optimistic outlook for passenger vehicle sales in January 2024. The industry body hopes the new product launches and stable positive consumer sentiment along with improved availability of vehicles will boost sales of passenger vehicles in the country in January 2024 as well as in this calendar year.
New launches, positive sentiment to boost sales in short and long-term
In its release, FADA said that in the short term, the focus will be on clearing pending bookings and the launch of new models. It also said that despite the concerns over high inventory levels and the impact of year-end discounts, positive market sentiments and the introduction of new models are likely to drive growth. However, it also pointed out that there will be challenges in terms of supply constraints for higher variants and shifting consumer demands towards SUVs.
In the long term, FADA hopes the passenger vehicle segment in India will see growth with new product launches and stable market sentiments. The improved vehicle availability and demand driven by new models with many automakers launching their electric vehicles will boost sales throughout the year. It also stated that caution should be exercised regarding excess inventory as well as the need to match production with actual market demand.
Speaking about the outlook for 2024, FADA President Manish Raj Singhania said that in the passenger vehicle category, SUVs in particular saw strong demand, with extended waiting periods for key models. “This surge was fuelled by aggressive year-end promotions and the introduction of new models. However, a significant concern was the high inventory levels, reflecting over-supply. This ongoing issue of high PV inventory, despite a slight decrease by the year’s end, remains a critical area for OEMs to address, emphasizing the need for further moderation in inventory management,” he added.
First Published Date: 08 Jan 2024, 12:10 PM IST