India’s light vehicles (LV) market is gearing up for a historic year, with a convergence of economic, political, and market factors set to propel growth to unprecedented levels. GlobalData, a leading data and analytics company, forecasts wholesales to reach a record high of 4.9 million vehicles this year, driven by robust economic expansion, government stimulus measures, sustained SUV demand, and a flurry of new model launches.
Ammar Master, Director (South Asia), Automotive at GlobalData, notes the strong start the Indian market has already seen in 2024, with January witnessing a 12% year-on-year (YoY) increase in LV wholesales. Preliminary data for February indicates a further 9% YoY growth, fueled by the introduction of new models like the Hyundai Creta facelift.
SUVs continue to dominate India’s passenger vehicle (PV) market, accounting for over half of the country’s PV volume. In 2023, SUV sales surged by 24% YoY to reach 2 million units, driven by automakers’ efforts to meet diverse consumer preferences with new offerings across market segments.
Master highlights the role of SUVs in driving early 2024 performance, with January sales jumping by 27% month-on-month (MoM) and 28% YoY, fueled by updated models like the Hyundai Creta and Kia Sonet. GlobalData forecasts SUV sales to reach 2.2 million units in 2024, driven by sustained demand and the launch of new models and variants.
Despite entering the SUV market relatively late, market leader Maruti Suzuki India has swiftly expanded its lineup with competitive offerings, including the second-generation Maruti-Suzuki Brezza and the Suzuki Grand Vitara. This expansion has led to a nearly doubled SUV sales volume in 2023, with GlobalData predicting SUVs to account for 31% of Maruti Suzuki’s PV volume in 2024, up from 28% in the previous year.
Master concludes by emphasizing Maruti Suzuki’s resilience and potential for further growth, projecting the company to strengthen its leadership in the SUV segment and widen the sales gap with competitors like Mahindra.
