India is at the forefront in leading the global automobile race, bypassing lower-priced products and creating more value in feature-rich, higher-priced vehicles. Consumer preferences and robust economic fundamentals are drivers of this transformation in the Indian automobile industry. Significantly, the UV and SUV segments are becoming a preferred choice for most Indian consumers,” said Anurag Singh, MD, Primus Partners

Mumbai: The Indian automobile industry grew 19 per cent to Rs10.22 lakh crore in FY24 driven by a robust growth in the utility and sports utility vehicle (SUV) segment, a report said on Wednesday.

The volume grew by 10 per cent during the year, the report by management consulting firm Primus Partners said. A notable shift in the UV and SUV segment was that the volume increased by 23 per cent and price by 16 per cent leading to overall value increase by 39 per cent last fiscal year. The average price increase in this segment was due to general rise in prices, shift to higher segment, shift to hybrid and automatic, popularity of sunroof and shift to electric vehicles (EVs), it said. Indians are preferring higher, more expensive models across segments, and the average price of vehicles is increasing, as per the report.

“India is at the forefront in leading the global automobile race, bypassing lower-priced products and creating more value in feature-rich, higher-priced vehicles. Consumer preferences and robust economic fundamentals are drivers of this transformation in the Indian automobile industry. Significantly, the UV and SUV segments are becoming a preferred choice for most Indian consumers,” said Anurag Singh, Managing Director of Primus Partners.