The shortage of semiconductors post-COVID-19 was eased with normalised global supply last year, while the increase in demand was influenced by higher disposable income, credit availability, new launches and minor impact due to regulations. The Indian auto industry recognizes the importance of reducing dependence on imported oil, enhancing road safety and most importantly, ensuring clean air. Over the years, the industry has made significant investments in indigenisation of technologies in the conventional vehicles space e.g. meeting BS-VI in 3 years. In FY 202223, the industry has implemented BS6.2 emission norms in India. The Government has notified Electric vehicle technology and Hydrogen fuel cell technology as advanced automotive technology under PLI (Production Linked Incentive) scheme and has approved E-Vehicle policy to promote India as a manufacturing destination for e-vehicles. This will provide Indian consumers with access to latest technology, boost the Make in India initiative, strengthen the EV ecosystem by promoting healthy competition amongst EV players leading to high production s, economies of scale, lower volume production cost, a reduction in our crude oil imports, and hence lower trade deficit and positive impact on environment. 33,77,389 10,07,311 7,01,005 2,11,79,847 42,18,746 9,67,878 6,91,749 1,79,74,365 PV (Domestic Sales) CV (Domestic Sales) 3W (Domestic Sales) 2W (Domestic Sales) Segment FY 2018-19 FY 2023-24 The Government has approved E-Vehicle policy to Promote India as a Manufacturing Destination for e-vehicles. AUTO INDUSTRY IN FY 2023-24 In FY 2023-24, passenger vehicle sales reached a new all-time high, with 4.2 million units sold, while commercial vehicle sales showed a marginal growth of 0.6% compared to FY23. The Indian auto industry (excluding two-wheelers) achieved its highest-ever sales of 5.88 million units, reflecting a year-on-year growth of 10.1%. Over ten years between FY 2013-14 and FY 2023-24, the Utility Vehicle (UV) segment has been a key driver of Passenger Vehicle (PV) growth. FY 2014-24: UV grew at CAGR 17% vs PV which grew at CAGR 5.4%. UV, as share of PV, has increased from 21% in FY 2013-14 to 59.7% in FY 2023-24. This growth in UV is driven by increased customer preference for UVstyled vehicles and new launches. In last two years, UVs have seen 20 new launches vs 2 launches in car segment. We believe that electric vehicle adoption in India would be led by e-3W; the key drivers being improving operating economies, easy deployment for last/first mile connectivity (including at metro stations) and the growth of startups as 3W aggregators. For the year FY 2023-24, a total of 1,12,474 e-3W were sold with growth of 72.9%, accounting for 16.3% of the 3W industry. 149 MANAGEMENT DISCUSSION AND ANALYSIS CAGR F19-F24 4.5% -0.8% -0.3% -3.2%
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