SHIFTING GEARS

The demand for sub-10 lakh rupees passenger cars is picking up fast as life returns to normal post-Covid. But there are many inherent challenges facing the automotive manufacturers

- Ashish Sinha

THE LAST FIVE years have been a one hell of a bumpy ride for India's domestic automotive sector, completely devoid of any charm and cheer. Passenger vehicle sales over the years have largely been a tale of setbacks for the carmakers. The outbreak of the corona virus only added to the misery in the last two years. But now, there is a faint but positive hope, especially for the four-wheeler makers. For the financial year ended 31 March 2022, the auto industry notched up sales of nearly 3 million passenger cars, which was more than 13 per cent higher compared to 202021. Back then, 2.71 million units were sold. In actual terms, the passenger car market in India is back to the level of 2016-17.

It's not just the overall numbers that are giving positive vibes to the domestic carmakers. There are some other bright spots as well. For instance, Maruti Suzuki, India's largest carmaker sold 1.36 million passenger vehicles during FY22, or 3 per cent higher than last fiscal. The silver lining here is that Maruti exported 2.38 lakh units in FY22 -- the highest so far in any financial year. The newly appointed managing director and chief executive officer for Maruti Suzuki India (MSIL), Hisashi Takeuchi said: “These export numbers are a reflection of India's manufacturing potential and the acceptance of India manufactured vehicles all over the world.” And he is right.