Auto OEMs Forecast Slower Sales Growth for FY26

At a recent internal meeting, Siam members reached a consensus that PV sales would grow by just 0.07 percent in FY25, with only a marginal increase of 1-2 percent in FY26.

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PV prices have risen by nearly 70 percent in recent years, largely due to changes in regulatory requirements, such as emission norms. At the same time, customer income levels have remained relatively stagnant. Entry-level cars have been hit the hardest, as declining affordability has shifted growth within the PV segment towards utility vehicles (UVs).

According to a senior executive at a leading PV OEM, despite these challenges, the Indian market still holds promise, with vehicle penetration at just 34 vehicles per 1,000 people.

At a recent Siam internal meeting, Maruti Suzuki Head of Marketing and Sales Partha Banerjee pointed towards a decline in first-time car buyers, which has dropped from 47 percent in FY19 to 40 percent now.