With slew of new launches, Auto Inc set for a happy new year
car models will be unveiled or go on sale in 2024 as automakers ride on the momentum of the past two years and launch new battery-run vehicles as part of the transition to electric. This will be the highest number of new model introductions in the non-luxury segment in the last few years. Besides electric vehicles (EVs), they will include facelifts of existing models.
New launches typically add 8-10% of total volume growth for automakers, potentially translating into 250,000-300,000 units of incremental volume, taking the domestic aggregate to a record 4.3-4.4 million units next year.
That would make it the third straight year of record annual sales volume for passenger vehicles.
India's passenger vehicle market, valued at ₹4.5 lakh crore, has been outpacing volume growth and the trend is likely to continue with the spate of new models led by EVs, which enjoy a superior realisation. Carmakers will likely clock ₹25,000-30,000 crore of incremental revenue from new model sales, according to analyst estimates.
In addition to internal combustion engine (ICE) driven sport utility vehicles (SUVs), the top five carmakers by sales will introduce at least one electric car model each in the next 12 to 16 months. That will expand the EV market, giving buyers more options, challenging the dominance of Tata Motors. The company controls more than 65% of India's nascent EV market.
Continuing with the pace of new model launches in 2022 and 2023, market leader Maruti Suzuki India will introduce the new generation Swift, showcased at the Tokyo Mobility Show earlier this year, and a new Dzire.
