Top 10 trends in passenger vehicles in 2020

Indian PV market has shown robust growth in the post-Covid-19 world.

By:December 26, 2020 10:49 AM
However, registration data is expected to show a double-digit rise, reflecting sales during the festive season.However, registration data is expected to show a double-digit rise, reflecting sales during the festive season.

 

1. PV market has shown robust growth in the past two months, with year-on-year growth rate of 31% in September 2020;

2. There is growing adoption of electric vehicles in the Indian market: The EV market is growing rapidly, achieving a growth rate of 44% with about 1 million units sold in FY20;

3. The mid-SUV segment has shown the fastest recovery in the post-Covid-19 world: The mid-SUV is the only segment in PVs with a positive CAGR of 27% in post-Covid-19 sales (the combined April to September 2020 sales);

4. Sub-compact SUVs are gaining market share rapidly: A significant market share has been gained by SUVs led by changing consumer preferences and new model launches;

5. Emergence of ‘futuristic digital dealership’: The adoption of digital dealership is increasing due to the rising digital penetration and the current pandemic;

6. The increased preference for personal mobility will drive demand in the post-Covid-19 world: The pandemic and the lockdown has changed the mode of commute, with an increase of 37% preferring to use personal four-wheelers post-Covid-19;

7. New entrants like Kia and MG are capturing the Indian market rapidly: Market structures are being disrupted by new entrants. Competitive intensity in Indian PV market is likely to increase further;

8. New models offering alternatives to car ownership are gaining popularity: New models such as subscriptions are giving consumers the ownership experience without committing to a long-term loan;

9. Used car sales in India have shown robust growth despite slowdown in new car sales: The used car market has seen a resilient growth of CAGR 6.2% compared to new cars with a CAGR of minus 0.2% for FY16-20; and

10. Successful transition towards cleaner fuels led by BS6 rules: The Indian automobile market made a successful transition to the BS6 emission rules despite the pandemic in 2020.

(Data provided by Praxis Global Alliance)

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