After years of having to wait for car deliveries due to production shortages and massive surges during Covid, customers are finally making a comeback and coming back as kings. In which they can get attractive discounts and upcoming attractive offers in the new financial year. And, the cycle of frequent price increases will end.
So, according to industry executives and analysts, 2024-25 could be the year when the car industry, which has been growing strongly for the last three years, will witness modest growth due to lower demand and increased inventory at dealerships .
According to experts, the car market is likely to close at a record volume of 42.9 lakh units in the current financial year. It has developed a strong base and “it may take some time” for it to grow rapidly again. Also, the pace at which consumers booked and purchased cars in the last three years may slow down now that the pending demand has been met and relief has been provided.
“There are a few factors that will keep growth subdued in FY25,” says Ravi Bhatia, president and director of research firm JATO Dynamics. Apart from the heavy base, the reasons include cars becoming costlier in previous years and production shortage during Covid. ” “Also, second-hand cars will eat into new car sales, especially in the entry category,” he said.
After initial concerns about demand during the Covid outbreak in March 2020, the pace of turnaround in sales surprised almost everyone.
