KOCHI: The Indian automobile market roared to new heights in 2023, showcasing a robust growth trend. Recent figures reveal a groundbreaking milestone, with the annual passenger car market soaring past the 40 lakh mark for the first time — a remarkable 8% surge compared to the previous year.
Behind these impressive numbers are automotive giants achieving monumental feats. Maruti Suzuki, a stalwart in the industry, accounted for nearly 40% of the sales, while Hyundai Motor India set a personal record with domestic sales surpassing 6,00,000 cars.
Post the disruptions caused by the pandemic and supply chain constraints, the car market is gradually regaining its stride. However, customers still contend with extended waiting periods, ranging from weeks to 8-10 months. Unprecedented demand has outpaced production numbers, turning India into a manufacturing hub for exports to emerging markets.
Safety has become a paramount concern for buyers, influencing their purchasing decisions. Features like airbags and advanced driver-assist systems (ADAS) have gained popularity, prompting the implementation of Bharat NCAP, India’s crash-test rating standards. Tata Safari and Harrier emerged as trailblazers, securing 5-star ratings in adult and child occupant protection. As safety becomes a focal point, more models are expected to announce BNCAP ratings. The focus on safety mechanisms, experts argue, will likely result in a slight increase in car prices.
Sales surge
Maruti Suzuki retains its coveted position as the leader in the market, boasting a 40% market share. With an impressive 17 lakh cars sold in India and 2,70,000 units exported, Maruti’s dominance remains unchallenged. The brand’s collaboration with Toyota, supplying models like Glanza and Rumion, has proven to be mutually beneficial.
Hyundai India, not to be outdone, achieved a historic milestone by selling 6,02,111 units — an impressive 9% increase from the previous year. Holding a 15% market share, Hyundai’s success extends to its sister concern, KIA, which enjoys a 5-6% share of the market. Tata Motors and Mahindra follow, with market shares of 15% and 12%, respectively. Meanwhile, Toyota and Honda secured 5% and 2.75% of the market, with the latter gaining traction after the launch of the Elevate SUV.
Price hikes
The landscape of the automotive market is evolving, marked by price hikes announced by manufacturers. Citing factors like rising input costs, commodity pricing, and increased logistics costs, brands such as TATA Motors, Maruti Suzuki, MG, Hyundai, Volkswagen, and Skoda have adjusted their prices.
Even luxury players, such as Mercedes-Benz India, are not immune to these adjustments, signalling a widespread industry shift.
Electric trends
In the realm of electric vehicles (EVs), Chinese carmaker BYD has claimed the top spot in the global electric car market by selling over 30 lakh units, surpassing even the renowned Tesla. This year marks BYD’s debut in the global top 10 car sales. In India, BYD has made its presence known with models like the E6 MPV and Atto3 SUV.
Hyundai Motor Group is gearing up for a significant shift, completing the redevelopment of the Kia AutoLand Gwangmyeong EV plant to produce the brand’s EV3 — a compact EV aimed at both domestic and international markets. The overarching strategy aims to position the group as one of the top three global EV manufacturers by 2030.
Cars as residential & mobility spaces
Connectivity is emerging as a pivotal trend, blurring the lines between residential and mobility spaces. Cars are becoming more than just vehicles, offering the ability to control digital appliances via in-car infotainment systems. Conversely, AI speakers, TVs, and smartphone apps enable remote vehicle control, emphasising a seamless blend of technology in everyday life.
Recently, Hyundai Motor Company and Kia Corporation entered into a groundbreaking agreement with Samsung Electronics, fostering a Car-to-Home and Home-to-Car service partnership. This collaboration aims to elevate the connectivity experience between residential and mobility spaces.
Growing trends of ADAS
As vehicles embrace advanced driver-assistance technology (ADAS), the industry is on the brink of a transformative era. These features not only pave the way for autonomous driving but also propel the domestic ADAS market toward the billion-dollar mark. Giants like BMW Group and Mercedes-Benz are already venturing into Level 3 ADAS, securing test licenses for self-driving on high-speed roads. This push towards autonomy is reflected in major players in the Indian market incorporating ADAS level 1 & 2 technology in their flagship models. The trajectory is set, and the Indian automotive landscape is poised for an electrifying future filled with innovation and connectivity.
NEW RELEASES
Bookings open for the new Hyundai Creta
Hyundai Motor India has officially opened bookings for the much-anticipated new Hyundai Creta. The vehicle exudes a commanding front look with a new radiator grill and an upright hood design, projecting a robust, assertive, and distinctive road presence. The interior of the new Hyundai Creta is packed with advanced hi-tech features, emanating a futuristic and cockpit-like feel. The seamlessly integrated infotainment screen and digital cluster offer a wide range of information. Available with three engine options, including the sporty and potent 1.5L Kappa Turbo GDi Petrol, 1.5L MPi Petrol, and 1.5L U2 CRDi Diesel, the new Hyundai Creta provides versatility. Customers can choose from four transmission options, including 6-speed Manual, IVT (Intelligent Variable Transmission), 7-speed DCT (Dual Clutch Transmission), and 6-speed Automatic transmission. Bookings for the new Hyundai Creta can be made at any Hyundai Dealership with an initial amount of Rs 25,000.
Skoda records sale of 1,00,000 cars
Skoda Auto India celebrates a remarkable milestone, having sold over 1,00,000 cars in the last two years. This achievement underscores Skoda’s successful India-centric product strategy, marked by the launch of two world-class products tailored for the Indian market – Kushaq and Slavia. These models have played a pivotal role in achieving these volumes in just two years, which previously took the company more than six years to accomplish. While 2022 was a record-breaking year for Skoda Auto India, with the launches of Kushaq and Slavia, 2023 faced some challenges due to supply issues and related constraints. Despite these obstacles, Skoda achieved sales of 48,755 units from January 1 to December 31, 2023, showcasing resilience and a commitment to a full recovery. The company has reached this significant landmark in the shortest time in its India operations, reinforcing its position in the Indian automotive landscape.
Simple Energy unveils latest electric two-wheeler
Electric vehicle and clean energy startup Simple Energy has unveiled its latest electric two-wheeler, Simple Dot One, with an attractive starting price of Rs 1,39,999 (Ex-showroom Bangalore). The Dot One, equipped with a fixed battery, achieves an impressive 160 km range in IDC, making it the longest-range E2W in its segment. Available in four colours, the Dot One comes with a 750W charger, setting new benchmarks as the fastest E2W in its segment, accelerating from 0 to 40 kmph in a remarkable 2.77 seconds. With a 3.7 kWh battery capacity and an 8.5 kW electric motor, it delivers a peak torque output of 72 Nm, further solidifying its position in the electric vehicle landscape. Pre-bookings are set to commence on January 27, with existing customers given priority to switch from Simple One to Dot One at Rs 1,39,999 (Ex-showroom Bangalore) from January 1, 2024. Pre-bookings can be made at www.simpleenergy.in for just Rs 1,947.