In this State of the Economy Podcast, businessline’s S Ronendra Singh talks to Puneet Gupta, Director (India & ASEAN Markets), Sales & Powertrain forecast, S&P Global, on the thriving Indian passenger vehicles market.  

The latest data from the Society of Indian Automobile Manufacturers (SIAM) reveals a marginal 1.3 per cent year-on-year growth in April, with total domestic passenger vehicle sales reaching 335,629 units.

Despite a 23.4 per cent decline in the passenger car segment, the utility vehicle segment saw a remarkable 21per cent surge during the same period.

“In India, we’re in a sweet spot, being the only top 10 global market to surpass pre-pandemic sales levels,” Gupta highlights. “With a projected growth in car sales from 5 to 8 million units by 2035, India’s automotive sector is poised for significant expansion.” He adds.

The podcast takes a look at India’s position relative to global markets, emphasising its resilience amidst geopolitical tensions and supply chain disruptions.

Gupta underlines India’s promising market status, projecting a positive trajectory for the foreseeable future.

“Factors like rising incomes, shifting consumer preferences, and demographic trends are driving growth,” Gupta notes.

“With India’s GDP per capita expected to rise, there’s immense potential for growth, especially in first-time buyers and rural markets.”, he adds.

Transitioning to the evolving landscape of powertrains, they discuss India’s gradual shift towards electric vehicles (EVs) and the role of Chinese manufacturers in this transition.

“India’s transition to EVs is inevitable,” Gupta says. “While the global market is dominated by BEVs and hybrids, India’s shift may begin with CNG and hybrid options before moving to pure BEVs.”

“The entry of Chinese EV manufacturers could accelerate India’s EV ecosystem development,” Gupta adds.

The conversation concludes with a look at luxury EVs and their potential in the Indian market.

Listen in!

(Host: S Ronendra Singh, Producer: Rowan Barnett, Siddharth Mathew Cherian)

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.