Passenger vehicles’ demand sees uptick this festive season: Survey

There is an uptick in the demand for passenger vehicles this festive season, with preference leaning towards sports utility vehicles (SUVs) and hybrid models, according to Grant Thornton Bharat’s auto survey. “With a 34 per cent year-on-year growth in vehicle sales in H1FY23, the passenger vehicle industry is gradually resurging from the pandemic. Ease in supply chain, a marked improvement in demand propelled by post pandemic festive sentiment and need for personal mobility are driving the sector as per our survey findings,” Grant Thornton Bharat Partner and National Sector Leader (Auto) Saket Mehra said.

There is also an increased affinity towards electric and hybrid vehicles, suggesting that the industry is on the cusp of disruption, led by EVs and alternative fuel sources, he added.

As per the survey findings on the kind of vehicles people plan to buy, SUVs topped the charts with 31 per cent, followed by compact cars at 28 per cent. There has been a five times growth in preference for SUVs compared with last year, it said.

Preference for EVs and hybrid cars has increased by 46 per cent and 62 per cent, respectively, as compared with 2021, as per the findings.

The report also highlighted an inclination towards premium models and vehicle features.

Additionally, 29 per cent of the respondents are willing to pay a higher price to swap their vehicle for a premium model, and 57 per cent responded that they would decide after factoring in the price difference between the base and premium variant, it said.

“This is a new trend for a price- sensitive market such as India,” the survey pointed out.

Over 4,000 respondents across digital platforms participated in the survey, Grant Thornton stated.