PVs contributed 57% of auto sector's revenue in FY23: Primus Partners

The domestic automobile segment produced 2.7 crore vehicles in FY2022-23, according to the latest report by Primus Partners. Of this, four-wheeler passenger vehicles generated the highest revenue share of 57%, which contributed to the ₹8.71 lakh crore generated by the automobile industry. According to the report, the passenger vehicle segment produced ₹5 lakh crore in terms of value and accounted for 16% of the volume.

Amongst passenger vehicles, the medium-sized SUV (sports utility vehicles) segment contributed 39% in value to ₹1.98 lakh crore with its market share growing from 10% in 2013 to 38% in 2023. The medium-sized SUVs such as Maruti Brezza, Mahindra Bolero, Hyundai Creta, KIA Seltos and Maruti Ertiga, sold 1,663 units in FY23.

The compact car segment contributed the second-highest in terms of value. The segment which comprises vehicles such as Baleno, Aura, Altroz and Amaze, sold more than 16.14 lakh units, thus contributing to ₹1.24 lakh crore in terms of value. It represented 25% of the value in the passenger vehicle segment in FY23.

This was followed by the full-size SUV segment, which sold 3.83 lakh units and contributed ₹68,000 crore in terms of value. The segment which comprises Scorpio, XUV 700 and Tata Harrier represented 13% of value in the passenger vehicle segment in FY23.

The luxury segment consisting of vehicles such as Toyota Fortuner, BMW, and Audi amongst others produced 1.6 lakh units and contributed to ₹63,000 crore in value, thus representing 13% of the value share.

Despite a decline in market share from 20% in 2011 to 6% in 2023, the sedan vehicle category was valued at ₹35,000 crore in FY2022-23. The segment comprises Hyundai Verna, Honda City and Nissan Sunny and represents 7% of value.

The mini segment represented only 3% in terms of value, the lowest amongst the passenger vehicles category. The mini segment produced 3.15 lakh units and contributed to ₹15,400 crore in value.

According to the report, the average value of passenger vehicles is estimated to be ₹11.4 lakhs.

"We expect this average value to increase due to general increase in prices and customers preferring more expensive feature-rich vehicles. The lower-priced 50% of units contributed to 35% of the value, and the higher-priced 50% contributed to 65% of the value. The key implication of these factors is that the industry is likely to grow at a higher rate in value compared to units," says the report.

Meanwhile, the commercial vehicle segment generated more than ₹1.7 lakh crore in FY23 and accounted for 4% of volume and 19% of value. The two-wheeler segment accounted for ₹1.8 lakh crore amounting to 21% of value.