Passenger vehicle sales to see moderate 3-5% growth this fiscal: Report

Passenger vehicle sales is projected to grow at a moderate 3-5 per cent this financial year on account of a high-base effect of FY24, shrinking order book and subdued demand for entry-level variants, a report said on Monday.

According to the report by credit ratings agency CareEdge, following robust growth of 90 per cent with volumes at 90,432 units in FY24, with an improving penetration rate, electric car sales in the passenger vehicle (PV) segment is likely to clock volume of around 1.30-1.50 lakh units in FY25.

In FY22 and FY23, the PV industry experienced substantial year-on-year volume growth due to pent-up demand post-Covid recovery and new product introductions, it said.

Utility vehicles played a significant role, with volumes increasing by 41 per cent in FY22 and 33.2 per cent in FY23. The industry benefitted from lower interest rates and an increased desire for personal mobility in the wake of the pandemic, CareEdge said.

According to CareEdge, utility vehicles contributed