PV segment may see record 18-20% growth in FY24: Report

NEW DELHI: The Passenger Vehicles (PV) segment volumes are expected to log a record 18-20 per cent growth this fiscal as the pent-up demand levels off amid hike in vehicle prices, CareEdge said in a report on Tuesday.

It also projected the PV sales volume to continue this growth momentum in the next fiscal, driven by factors such as strong order book and improvement in supply chain, the credit ratings agency said.

The demand for premium variants is expected to remain healthy, while that of entry-level variants may remain muted due to high interest rates and an inflationary environment, according to CareEdge. The Electric Four-Wheeler (E4Ws) segment - which contributes about 6 per cent to the total EV market sales - volumes have grown significantly in the past few years, it said.

Major Original Equipment Manufacturers have planned to introduce more EV models in the future, suitable for the domestic market that could boost their adoption and increase competition in the market, it added.

“The PV industry is likely to record a volume growth of around 18-20 per cent in FY24 as pent-up demand levels off amid hike in vehicle prices,” CareEdge research director Tanvi Shah said. This upward trend is likely to persist in FY25 led by a strong order book, improvement in supply chain, robust demand for new model launches and increasing demand in the Utility Vehicles (UVs) segment, she added. The PV segment constitutes 18 per cent of the country’s total domestic sales, as per the report.

The PV domestic sales grew 25 per cent year-on-year in the first nine months of FY24, it said, adding the segment’s growth trajectory continued for two consecutive fiscal years with improved vehicle availability and an influx of new and refreshed models from various OEMs. Further, the exports during the April-December period of the current fiscal grew 3 per cent compared to the same period last year, aided by demand from UVs etc