New Delhi, Mar 23 (KNN) India's automotive sector is revving up for a historic milestone, with projections indicating a remarkable surge in sales, expected to surpass 4.23 million vehicles.

This surge is fuelled by a substantial double-digit increase in sales this month, setting the stage for a robust performance throughout the year.

This impressive growth solidifies India's position as the world's third-largest passenger vehicle market, maintaining its lead over Japan for the second consecutive year. 

Japan, with 3.99 million registered passenger vehicles in 2023, reports its data on a calendar year basis, while China remains the largest car market globally, closely followed by the US.

March forecasts indicate a significant uptick in sales, with estimates ranging from 375,000 to 380,000 cars, sedans, and utility vehicles, compared to 336,000 units sold the previous year. 

This marks the 15th consecutive month of breaking previous monthly sales records, showcasing the sustained momentum in India's automotive sector.

Of particular note is the burgeoning popularity of sport-utility vehicles (SUVs), which are poised to capture over half of the passenger vehicle market this year, signalling shifting consumer preferences towards larger, versatile vehicles.

Shashank Srivastava, senior executive officer of Maruti Suzuki, the country's largest carmaker, commented on the positive demand trends for March, despite a slight lag in retail sales attributed to pre-Holi festivities, reported ET.  

He noted that while retail sales have dipped slightly, dealer inventory has seen a minor increase.

It's important to note that automotive manufacturers in India typically report wholesale dispatches from factories rather than direct sales to customers.

Cumulatively, companies dispatched 3.86 million cars to showrooms between April 2023 and February 2024, representing a notable growth of 8.6 per cent over the previous year.

Industry stakeholders remain optimistic about sustaining this upward demand trajectory, buoyed by favourable market conditions and evolving consumer preferences. 

(KNN Bureau)