Passenger vehicle sales in India can set a record with 3.8 million units

Passenger Vehicles (PV) sales in the country may set a record in FY2023 with 37-38 lakh units. This will be a growth of 21-24 percent compared to the previous financial year. Easing of supply chain constraints and increasing capacity utilization over the past few quarters should help automobile companies meet demand.

Ratings firm Icra said in a report that in the first half of the financial year 2022, supply chain difficulties and semiconductor shortages due to the epidemic had a major impact on the capacity utilization of the automobile industry. The semiconductor shortage situation has improved over the past few quarters, along with supply chain difficulties. This has also helped in increasing the capacity utilization of the companies. Due to strong demand, companies in this sector have also started work on their plans to increase capacity. According to the report, “original equipment manufacturers continued to invest in expanding capacity and developing new products, despite the difficulties and semiconductor shortages caused by the pandemic. volume Had good growth potential.”

Many automobile companies have announced to spend more than 250 billion rupees in the coming years to increase the capacity. Apart from this, component manufacturers are also increasing their capacities. Some automobile companies have made preparations to increase the production of Electric Vehicles (EV).

Tata Motors, one of the largest automobile companies, has planned to increase growth through the EV segment. Recently the company has achieved the milestone of producing 50,000 electric vehicles. Tata Motors plans to launch 10 EVs in the next five years. company believes that the people of the country are taking interest in electric vehicles. These vehicles offer a solution to problems like rising fuel prices and pollution. Regarding this segment, Shailesh Chandra, Managing Director, Tata Motors had said, “Buyers of electric vehicles are on the rise.” The company has introduced features like Multi Mode Regen and Multi Drive Mode to meet the EV needs of the customers. It has also started educating customers on the best way to drive an EV for more range.

(This news has not been edited by NDTV team. It is published directly from syndicate feed.)