Next year will be great for auto sector, experts told the reason

The Indian automobile industry is expected to maintain a steady growth rate in 2023 despite rising costs and rising interest rates due to new emission and safety standards.

The year 2022, which ends in a few days, has proved to be excellent for the Indian automobile industry.

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After recovering from the Kovid-19 epidemic, the Indian automobile industry is expected to maintain a steady pace of growth in the year 2023 despite rising costs and interest rates due to new emission and safety standards. The year 2022, which ends in a few days, has proved to be excellent for the Indian automobile industry. The passenger vehicle (PV) category is poised to record record sales in 2022, despite the impact of supply chain constraints and semiconductor shortages. But two-wheeler sales haven’t seen a jump for most of the year.

What will be the condition of the sale of passenger vehicles?

According to the vehicle industry, this year the sales of passenger vehicles can reach around 38 lakh units. The three wheeler and commercial vehicle category has also seen good growth as compared to last year. Vehicle manufacturers would be eager to continue this momentum in the next year as well. According to industry experts, the year 2023 will also see a boom in the adoption of electric vehicles. The year 2022 has also seen a boom in the sales of electric vehicles, especially in the two-wheeler segment.

However, the news may not be good for those looking to buy a vehicle in the new year. The reason for this is that vehicle prices are going to increase next year. From April 1, 2023, automakers will pass on the cost of adapting themselves to stricter emission norms and technology adoption, on buyers. Many companies like Maruti Suzuki, Tata Motors and Hyundai have already said that they are going to increase prices from January.

Rising interest rates will affect

Apart from this, the impact of rising interest rates and deteriorating global economic situation on India in the coming days has also forced the Indian automobile industry to remain cautious. RC Bhargava, chairman of Maruti Suzuki India, told PTI that a price hike always has a definite negative impact on sales. But we do not yet know how much the prices will increase and what will be the condition of input cost and foreign exchange. Such uncertainties will always remain.

However, he said that the domestic car industry has seen a revival in the last few months and the semiconductor shortage is also going to end in 2023. Bhargava said that he would predict that next year would probably be a very good year for the industry. He said that if not better than 2022, then at least this much should be done.

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