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If we need to give a long-term impetus, some kinds of subsidies are required for EVs: Kia India Sales Head
The 2024 has been an average year for the Indian passenger vehicle sector, in terms of growth rate over last year primarily because of the government investments not coming much and also layoffs in the information technology industry, said Hardeep Singh Brar, Senior Vice-President and Head of Sales and Marketing at Kia India. However, next year is going to be much better and the industry is expected to grow anywhere between 5 per cent and 10 per cent, primarily with government investments coming back and also IT layoffs behind us, he told businessline. Excerpts:
What expectations do you have for the industry in 2025?
2024 has been relatively an average year in terms of growth rates over last year primarily because of the government investments not being there and also a bit of IT layoffs. But I think the next year is going to be much better than next year. We expect more than five per cent growth rate, primarily with government investments coming back and IT layoffs behind us and IT industry again getting back into recruitments. One big factor which is unpredictable right now are the monsoons. I think this year they were great, and we expect them to be good next year as well. So, if these three things fall in place, anywhere between 5 per cent and 10 per cent could be the growth rate next year.
What about the SUV segment?
Last year (2023) the SUV grew by around 50 per cent and this year (2024) they grew by about 54-55 per cent. Multi-purpose vehicles (MPS) were about 8 per cent and they have also grown by up to 10 per cent now. So, both put together are now today about 63-64 per cent (of the total PV sales) …if you look at compact and the mid-SUVs, they are very strong…and as a result of this, the hatchback and sedans are actually declining.
In 2024, we haven’t seen favourable schemes for the electric or strong hybrid vehicles? Do you expect something in 2025?
Yes, I feel so because the EV market has not grown as expected. It was two per cent last year and it is still about 2.2 per cent and the hybrids have overtaken the EVs. So, I think if we need to give a long-term impetus, some kinds of subsidies are required, whether at a Central government level or at the State level. For example, while the GST is 5 per cent, but a lot of States are still imposing full road tax and registration on the EVs, and in those States, sales are impacted because the price parity doesn’t come otherwise.
We expect more than five per cent growth rate, primarily with government investments coming back and IT layoffs behind us and IT industry again getting back into recruitments. Hardeep Singh Brar, Senior Vice-President and Head of Sales and Marketing at Kia India
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Published on December 31, 2024
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