There is a big change in the pattern of car sales in India. The sales of expensive cars are increasing, while the demand for cheap cars is decreasing. According to the latest data, there has been a decline in the sales of cars cheaper than Rs 10 lakh. The sales data before Diwali is not in favor of Maruti Suzuki. Decreasing sales of cars cheaper than Rs 10 lakh can create great tension for Maruti, because the company’s main focus remains on cheap cars.
Maruti Suzuki India (MSI) Chairman RC Bhargava said that the decline in sales of cars priced below Rs 10 lakh is a matter of concern. There was a time when the share of these cars in the total sales was 80 percent, but now it is continuously decreasing. Maruti Suzuki The chairman has also explained the reason behind the decline in sales.
Why did the sales of cheap cars decrease?
He attributed the decline in sales of cheap cars to people having less income to spend. Bhargava said that to increase the sales of cars cheaper than Rs 10 lakh, it is necessary for people to have more disposable income. However, the company expects total retail sales to increase by 14 percent during the festive season.
At one time there was 80 percent stake
He said in the conference call that the market for cars priced below Rs 10 lakh is not growing. In fact this market is declining. Unless there is growth in this segment of the market, overall growth will be affected.
According to SIAM (Society of Indian Automobile Manufacturers) data, the share of cars priced below Rs 10 lakh in the market was 80 percent in 2018-19. During that time, the wholesale of passenger vehicles in India was 33,77,436 units.
Share reduced by 50 percent
The market share of passenger vehicles priced below Rs 10 lakh is now less than 50 percent. In the financial year 2023-24, the wholesale of passenger vehicles in the country had reached a record high of 42,18,746 units.
The main focus of Maruti Suzuki India remains in the small and compact car market. This company has been the leader in this segment. But now the sales of cars priced below Rs 10 lakh are not increasing.
