NEW DELHI: Raipur in Madhya Pradesh has noted a marked rise in demand for luxury cars. Monthly sales more than doubled, from 20 in 2019 to over 40 in 2024 and is projected at 70 in the next four years. Luxury brands such as Audi, Mercedes, BMW and BYD have acquired a noticeable presence in showrooms across 13 states, as per an Anand Rathi research of automobile trends gathered through travel across the country and covering 8000+ kms on road. The findings are based on meeting with dealers and distributors in locations ranging from including Dewas and the outskirts of Indore in Madhya Pradesh, cities in Rajasthan (Jodhpur, Pali, Barmer, Sumerpur), Amravati and Aurangabad in Maharashtra, Jalpaiguri in West Bengal, Assam, Rohtak in Haryana, Amritsar in Punjab, Bilaspur in Chhattisgarh, Lucknow and Kanpur in Uttar Pradesh and Anand and Nadiad in Gujarat
The two-wheeler market in India is seeing new-age riders upgrading from basic 100cc motorbikes to 125cc models and beyond. While Hero MotoCorp’s collaboration with Harley Davidson to produce 440X model has been particularly successful, despite dominating the market with a 38 per cent share with models such as Splendor, Passion and Delux, the two wheeler giant is faced with competition in parts of Madhya Pradesh. The surveyed markets are witnessing subdued demand in commercial vehicles (CVs) though dealers are confident of double-digit growth in LCVs in FY25 in the western region backed by improving infrastructure.
There is however, growing Interest in electric two-wheelers (2Ws) and hybrid cars, particularly those from Toyota and Maruti. In Uttar Pradesh and Maharashtra, electric 2Ws have attained 10-12 per cent penetration levels. This mounting interest underscores a significant shift toward more environmentally-friendly transportation options.
The tractor segment continues to be faced with challenges with sales on deceleration due to super-normal growth post-Covid’19, unseasonal rains in FY24, and the absence of government subsidies. An Escorts Kubota dealer highlighted that while FY23 saw robust sales, FY24 has been affected by lower agricultural output.
A key emerging trend across many states is premiumisation, driven by higher rural incomes, higher land prices, available finance and deeper brand penetration. This is evident in the automotive sector: a noticeable shift from basic models to more premium offerings. The subsidy dynamics across states reveal that Chhattisgarh continues to offer a 10 per cent subsidy on ex-showroom prices of electric vehicles, maintaining government support to encourage adoption of EV. In contrast, the Government of Maharashtra has ceased providing FAME subsidies (Faster Adoption and Manufacture of Electric Vehicles), potentially impacting the growth pace of EVs in the state.
Highlighting challenges and opportunities for various brands, Anand Rathi reports 8-10 per cent growth for Maruti Suzuki which has seen and holds more than a 40 per cent market share. However, our interactions suggest that the company is gradually losing ground to Hyundai and Kia Motors, as consumer preferences shift toward SUVs. Maruti’s recent models such as the Brezza and Vitara, have done well, but new launches such as the Fronx and Jimny have not seen noteworthy offtake. On the other hand, Tata Motor(TAMO)s’ market share in Gujarat has decreased from 22 per cent to 18 per cent while the company outran Mahindra & Mahindra and Hyundai in Chhattisgarh, primarily due to the popularity of its Nexon model. In Dewas, Mahindra & Mahindra (M&M) holds a dominant 50 per cent market share in tractors, doing better than competitors such as John Deere. This suggests huge product satisfaction and strong brand preference in the region. In Amritsar, electric 2Ws are gaining traction but are faced with competition from Chinese models, which are priced at Rs.35,000 to Rs.40,000. This price-sensitive segment highlights the challenges local manufacturers are faced with in competing with lower-priced imports.