FY25 to greet car buyers with discounts as demand shrinks

Mar24,2024


New Delhi: After waiting for car delivery for years lack of production And due to extreme surge in Covid period, customer finally bounces back and returns as king with attractive Discount And there is a possibility of attractive offers in the new financial year, And, the era of frequent price hikes is over.
Therefore, 2024-25 could be the year when the car industry, which has been growing strongly for the last three years, will see slower growth. demand shrinks and build-up of inventory at dealerships, industry executives and analysts told TOI.
According to experts, the car market, which is likely to close the current financial year with a record volume of 42.9 lakh units, has developed a heavy base and “may take some time” before it grows rapidly again. Additionally, the pace at which consumers booked and purchased cars during the last three years may now see a slowdown as pent-up demand has been met and relieved.

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Ravi Bhatia, President and Director of Research, says, “There are a number of factors that will keep growth subdued in FY2025. Apart from the heavy base, the reasons include cars becoming costlier over the years and post-Covid production shortfalls.” also includes.” Firm Jato Dynamics. “In addition, used cars will take share of new car sales, especially in the entry category.”
After initial concerns about demand during the Covid outbreak in March 2020, the pace of the sales turnaround took almost everyone by surprise
The incident, which coincided with a severe global shortage in the supply of semiconductors, saw huge waiting periods across all brands, with pending deliveries rising to 7 lakh units at one point. With companies gradually increasing production and semiconductor availability becoming easier, most of the pent-up demand has been met, leading to a situation where companies are now pushing models through special campaigns and discounts.
“Looking at the current analysis, it looks like growth will remain slow, or at least in single digits,” says Shashank Srivastava, senior executive officer (sales and marketing), Maruti Suzuki.
Kunal Bahl, VP (Marketing and Sales), Honda Cars India, also says that it may be difficult for the industry to move forward.



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