Planning a Car Purchase? Great Deals Await!

In the coming months, if you are planning to buy a new car, you might be in for a treat. The market is expected to offer lucrative discounts and attractive offers on various models of cars. This comes at a time when price hikes by Original Equipment Manufacturers (OEMs), which have been prevalent due to long waiting periods for passenger vehicles during production shortages caused by the pandemic and related disruptions like component and microchip shortages, are likely to cease. 

The Times of India has reported that industry officials and analysts predict 2024 could see limited growth in the Indian passenger vehicle industry owing to sluggish demand and inventory build-up. Despite this projection, it's worth noting that after registering record sales of 41 lakh passenger vehicles in 2023 driven largely by SUV sales, the Indian car industry is expected to close this financial year with record volumes approximating at around 42.9 lakh units according to industry experts. 

However, they also suggest that the pace of booking and purchasing cars witnessed over the last three years may slow down due to several factors. Over recent months, car manufacturers across India have announced increase in prices across their portfolio citing increased production costs as one key reason among others. 

Additional elements such as inflationary pressures coupled with high fuel costs and rising maintenance charges have resulted in consumers being more cautious about buying new cars leading potentially towards dwindling consumer decisions regarding new purchases. These circumstances could put pressure on growth within this segment over forthcoming months. 

Nevertheless, automakers keen on sustaining sales momentum might start offering enticing discounts beginning next financial year. Car dealers too may follow suit offering deals from their end aiming at reducing inventory levels thereby benefiting consumers who wish to purchase new passenger vehicles. 

Ravi Bhatia - President & Director at JATO Dynamics research firm while speaking about projections for growth within Indian Passenger Vehicle Industry stated multiple factors would keep sector’s expansion subdued into FY25 including increasing costliness of cars during previous years along with the meeting of production shortfalls triggered by COVID. "Used cars will also take up a share from new car sales, especially in the entry category," he added. 

Shashank Srivastava, Senior Executive Officer (Sales & Marketing) at Maruti Suzuki voiced similar sentiments stating that growth would likely be muted or at best show low single digit increases based on current analysis. 

In conclusion, although there may be limited growth projected for the Indian passenger vehicle industry in 2024 due to various factors such as price hikes and inflationary pressures among others, consumers planning to buy a new car can look forward to attractive discounts and offers both from automakers and dealers which could help alleviate some pressure off their wallets.