Toyota betting big on SUV dominance in India in 2024
Vikram Gulati, the executive vice president and country head of Toyota, expects the Indian passenger vehicle (PV) market to maintain its growth trajectory in 2024. He also predicted that SUVs will be the driving force behind India's PV market expansion next year. Gulati told PTI, "We are well beyond the part when people were saying this is pent-up demand. We have built much beyond that, and the festive season has seen very good pickup."
SUVs outpacing hatchbacks and small cars
In 2023, India experienced a surge in SUV sales, surpassing the demand for hatchbacks and small cars that have dominated the market for years. Gulati forecasted that SUVs will see rapid growth overall in 2024, with the mid to higher end of the segment experiencing even faster acceleration. However, he also noted that the small car segment might remain a concern for automakers.
Indian PV market witnesses growth in 2023
Gulati said he believes that the current shift toward SUVs will persist in 2024 as more consumers are willing to pay extra for enhanced features and safety. "In terms of performance and convenience, I think there is a very clear sign that customers will not compromise on that," he said. The total passenger vehicle sales in India are set to exceed 40 lakh units in 2023, up from 37.93 lakh units in 2022 and 30.82 lakh units in 2021.
Toyota on track for record sales on our shores
Meanwhile, Toyota is on track for record-breaking sales in 2023, having already sold 1.92 lakh units between January and October. It also surpassed the earlier highest yearly sales record of 1.72 lakh units in 2012. While SUVs are experiencing increased demand and sales, small cars are facing a significant decline in retail numbers. Gulati expressed concerns, stating, "The challenge as we see today is more toward the smaller car segment. That will be interesting to see how that plays out."
