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The latest edition of Auto Dealtracker analyses the Indian automotive industry's shift towards sustainable and innovative transportation solutions, aligning with the country's environmental and economic goals. As the sector adapts to changing policies and market demands, stakeholders are well-positioned to capitalise on emerging opportunities. The industry's continued evolution is expected to be shaped by ongoing policy developments and shifting market dynamics, influencing its trajectory towards sustainable growth.
Key insights from the Automotive Dealtracker Q2 2024:
Accelerating EV adoption: India's transition to renewable energy is vital for meeting its ambitious net zero emissions target by 2070. The automotive sector, particularly the EV market, is pivotal for this transition. EV penetration increased to 6.8% in FY24 from 5% in FY23, indicating a healthy trajectory. However, sustaining this growth trajectory requires continuous and robust government support, reflected in India's "Panchamrit" goals, which aim to enhance non fossil fuel-based energy capacity to 500 GW by 2030.
Sustainable transport solutions: As India progresses towards its ambitious environmental and economic goals, the automotive industry leads this shift towards more sustainable and innovative transportation solutions. In this aspect, the sector's ability to adapt and grow amidst changing policies and market demands are expected to be crucial. For stakeholders, leveraging these insights and adapting to the evolving landscape will be key to capitalising on the emerging opportunities within India's automotive sector, ensuring its continued growth and alignment with global sustainability trends.
Rise in deal activity: Amid these positive developments, the industry has also witnessed substantial financial growth, with a 24% quarter on quarter increase in deal values and a 12% rise in deal volumes, largely driven by PE transactions. This indicates a recovery from previous economic downturns and a strong investor confidence in the potential of the Indian automotive market, particularly in the areas of alternative fuel and sustainable technologies.
