Tata Motors' Punch is poised to climb 6 places and become India's top selling car model in 2024, as per data from Jato Dynamics. The micro SUV model will be overtaking 2023 leader Maruti Suzuki's Swift besides others like Hyundai's Creta, Tata's Nexon and Maruti's Wagon R, Baleno and Brezza models this year.Tata's Punch clocked a compound annual growth rate of 73% from 2021 to 2024 in unit sales, the fastest among all the models since its launch in 2021. Among other factors, Tata Motors' strategy to offer multiple powertrains spanning petrol, CNG and electric helped the vehicle maintain its sales momentum, and surge from the 7th position in 2023. Tata Motors is likely to end the year with a record 200,678 units of the Punch, ahead of 187,225 units of the Wagon R. Creta, Ertiga, Brezza, Swift, Baleno, Scorpio, Fronx, and Nexon are the other eight models in terms of sales rankings. The vehicle's weighted average price excluding discounts and incentives is estimated at ₹8.38 lakh in 2024, rising 9% from last year. Average weighted price is calculated by multiplying each variant of a model with units sold. Sum of all these-variants multiplied by the number of units of each-is divided by number of units sold.116692599 Tata's Nexon, which is estimated to have slipped to the 10th position from fifth in 2023, is likely to end the year with 156,770 units. Heightened competition in the segment has weighed on Nexon sales, according to dealer sources. This is despite a drop in model's weighted average price to likely ₹11,89,448 in 2024 from ₹12,09,891 in 2023. Most of the top ten models saw consistent rise in average weighted price since 2019."An increasing demand for premium features-infotainment systems, etc-drives manufacturers to include them in base models, leading to higher prices," said Ravi Bhatia, president, Jato Dynamics, India. Volume compound annual growth rate of small cars continues to be in negative territory as buyers are opting for SUVs. But small car prices saw a positive rate in the 6-year period from 2019 to 2024. For instance, the average annual growth rate of the number of units of Swift showed a decline of 1.3% since 2019. But the average annual growth rate in its weighted average price indicates a 2.2% increase.Additionally, new technologies like electric powertrains, autonomous driving capabilities, and advanced materials too have inflated car prices. Also, implementation of goods and services tax (GST) has standardised taxes across states, but the overall tax burden on cars remains high, impacting affordability, he said. "Additional cess levied on certain car categories such as luxury cars and SUVs further contributes to price increases," added Bhatia.
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