In a big news that has been doing round over the internet Suzuki the Formidable market player in India has slashed its growth rate amid the fall in demand as well as the slowdown of entry level vehicles. The Company has revised its yearly plans and outlook downwards by 15%.
The company has showcased a slower compounded annual growth rate of 5% in the next six years as against the former statistics of around 8 % increase.
The Downward spiral has been reported after the automotive industry body, the society of Indian manufacturers association have guided for another year of single digit growth for the passenger vehicle market. Maruti’s share in the overall market has been under pressure due to the sustained move users have been showcasing towards the SUV. But Suzuki itself has been able to adapt its line up accordingly, still it seems to be reeling under the pressure of falling demand for entry level cars.
As per a report by Auto Car SUV’s have accounted for nearly one third of the overall passenger vehicles sales in India. The share of hatchback has fallen below25% for the first time.
Global EV Slow Down A possible Reason
The EV adoption rate has showcased a much slower pace than what was expected by the manufacturers, beyond that the stringent tax structures and regulations have further contributed to the EV Adoption Slowdown.
As per a report by Economic Times the EV sector witnessed a sharp decline in funding , dropping from that of $934 million in 2022 to $586 million in 2024. The Decline that has been attributed to policy changes and slower growth rates has driven the investors to prioritize Unit Economics and profitability rather than committing to new ne capital investments. While Suzuki has regarded the slowing entry level car sales as the reason behind its target shrinkage, the EV’s sales drop could have been a possible reason for such changes as well. Since Suzuki is now planning to launch only 4BEV’s by 2030 rather than 5 BEV vehicles models that it first wanted to launch in Europe. Suzuki has not regarded the overall EV sales drop down as the possible reason behind the overall target shortening.
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