Resurgent Retail - Powered by Rising Domestic Consumption

Cushman & Wakefield

Passenger Vehicle (PV) sales have touched an all-time high of 4.2 million cars during the last fiscal year 2023-24, making it two consecutive years of record volume growth. If we delve deeper into this data, premium variants such as the Utility Vehicles (UV) segment – typically, higher-priced variants within the overall PV segment – have become the most dominant segment in the last two years, crossing 50% market share compared to ~30% in the pre-COVID period. A rising base of young and aspirational consumers with higher disposable incomes is the primary reason attributed by industry experts to the rise in the sale of UVs in India. the most dominant segment in the last two years, crossing 50% market share compared to ~30% in the pre-COVID period. Utility Vehicles (UV) segment – typically, higher-priced variants within the overall PV segment – have become

Passenger vehicle (PV) sales at all-time high; higher-priced utility vehicles (UV) soar higher

0 10% 20% 30% 40% 50% 60% 70%

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

59%

52%

49%

39%

34%

28% 28% 28%

0 500

3,048

3,288

3,377

2,774

2,711

3,070

3,890

4,219

Passenger Vehicles Sold (in ‘000s)

Share of Utility Vehicles in PV sales (%)

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

2023-24

Financial Year

Source: SIAM data

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