PV industry sales to hit 4-million this calendar year: Renault MD

Venkatram Mamillapalle, CEO and MD of Renault India, anticipates that domestic passenger vehicle sales in India will exceed 4 million units in calendar year 2023, despite various constraints such as semiconductor chip shortage, electric vehicle market traction, and upcoming general elections. He attributes the expected growth to pent-up demand, new launches, government infrastructure development, drop in CNG prices, and stable job markets. He also hints at the re-entry of Renault’s Duster SUV with enhanced features, while stating that sales in 2022 would be similar to the previous year.

Domestic passenger vehicle sales are expected to breach the 4-million mark during the calendar year (CY) 2023 despite several constraints, said Venkatram Mamillapalle, CEO and MD, Renault India.

“I am optimistic that the domestic Total Industry Volume (TIV) would cross the four-million mark due to a strong order book driven by pent-up demand due to a prolonged supply chain constraint, excitement around new launches, government’s thrust on infrastructure development, drop in CNG prices, and stable and improved job markets,” he said during an interaction.

“The growth in TIV would lead to fluctuations in the percentage of market share of automakers, but there will be volume growth for all,” he said.

Last year, the domestic market recorded passenger car sales of 3.8 million units with Maruti Suzuki, Hyundai Motor, Tata Motors, Mahindra, Kia India and Toyota Kirloskar recording ‘good’ growth.

However, he felt the industry could face headwinds this year in the form of semiconductor chip shortage due to China’s Taiwan drill, traction in the electric vehicles market and upcoming general elections.

“The industry is facing semiconductor shortage, but it is not reflected in the supply chain. We are moving chips through precious flights to expedite shipment. If the problem continues for 4-5 months, then it will affect overall production,” he cautioned.

Asked about the ongoing electrification transition, he said that original equipment manufacturers are expected to incur significant investments in the development of ground-up EV platforms and enhance manufacturing capacities. A lot of action is going to be seen on the EV front, he added.