SUVs to drive India’s passenger vehicle sales volume 5-7% in FY25, claims study

Passenger vehicle sales volume in India is expected to register up to seven per cent in the next financial year, claims a study by credit rating agency Crisil.

The study further noted that rapidly rising demands for SUVs in India will propel growth in the Indian passenger vehicle market in the next financial year. Also, it claimed that SUVs will help the segment to touch a new peak for the third straight time in the next fiscal.

The study further stated that anticipated growth in the passenger vehicle market of the country is expected to come on the back of an estimated high base of about eight per cent in this financial year. Interestingly, this growth comes even as demands for passenger vehicles in the domestic and overseas markets remain muted.

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SUVs to propel growth in FY25

Over the last few years, a significant change in consumer preference has cranked up demand for SUVs in India. This shift in consumer preference has led the market share of SUVs in the country to double to around 60 per cent of total domestic passenger vehicle sales in this financial year from 28 per cent recorded in pre-pandemic FY2019, claimed the rating agency.

The study expects this preference in favour of SUVs to grow further. This would be backed by a healthy pipeline of new model launches across different price points, including both internal combustion engine and electric propulsion system-powered variants. The normalised availability of semiconductors after a prolonged period of shortage will also help this growth momentum.