Entrepreneur Karan Asrani's views on the downward trend of sales of passenger vehicles
The sale of passenger vehicles in India has witnessed an upward trend in the last few years. As per the reports, passenger vehicle (PV) sales in India could surpass more than 38 lakh units in FY23. However, entrepreneur and the owner of Krishna Group of Industries, Mr. Karan Asrani has a different take on the sale of PVs after looking at the current market situation.
Going by the stats, the best Indian PV-market sales were in 2018, with about 33.8 lakh units. The number of sales of PVs for the current year till October 2022 stands at 31.95 lakh units. Moreover, the wholesale volume for November 2022 is said to be 3,25,000 units which take the number to approximately 35 lakh units till now.
For December, add another 3,00,000 plus units which take the calendar year 2022 to cross more than 38 lakh units, thereby creating a new high. While FY23 has been a dream year for the automobile industry, Karan Asrani foresees that the momentum will see a downward trend in 2023-2024 with the pent-up demand already being released.
Particularly, passenger vehicles, Karan Asrani believes that there is a possibility of moderation on the offtake of passenger vehicles in the third quarter of the ongoing fiscal year. Besides this, the entrepreneur revealed that the growth rate of PV sales will also depend on the impact of the new set of regulations like BS VI phase II and the new safety regulations coming in by next year.
In addition, Mr. Asrani opines that the entry-segment passenger vehicles such as hatchbacks and other small vehicles will have a hampering impact. It is because of the increase in price and the new regulations like BS VI Phase II real-time driving emissions and the mandate of six airbags in passenger cars from October 2023.
Another crucial aspect revealed by the head honcho of Krishna Group of Industries is the supply-demand mismatch. The vehicle despatches might have grown in November at a good pace, but the retail sales have hit a low because of softening of deliveries after the 42-day festive season, which ended in October.
"I believe that there will be a mismatch between supplies and the models in demand. There's a backlog of pending orders of passenger vehicles. Many SUVs,have a very long waiting period because of a shortage of parts. In the coming time, it would be interesting to see the purchasing of PVs as it would depend on factors like inflation rate, liquidity and economic growth as a whole", the entrepreneur concluded.