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The Indian automobile industry is witnessing a remarkable transformation, with electric vehicles (EVs), flex-fuel models, and CNG-powered vehicles taking center stage in recent launches.
A report by Phillip Capital highlights that these alternative fuel vehicles are rapidly reshaping both passenger and two-wheeler segments, signaling a major shift in consumer and industry preferences. The report also stated that the recently concluded Bharat Mobility Auto OEM Expo in Delhi also showcased a significant shift in automakers' strategies, emphasizing alternative fuel vehicles. It said "Bharat Mobility Auto OEM Expo revealed a significant shift in automakers' focus towards alternative fuel vehicles. Electric vehicles, flex-fuel, and CNG models dominated the launches for both passenger and two-wheeler segments.". According to the report, the automotive sector in India is poised for significant growth, driven by the rising popularity of SUVs, electric vehicles, and hybrid models. Automakers are actively planning numerous launches in these segments to cater to evolving market demands. The ongoing premiumization trend in the industry has also brought impressive designs at competitive prices, further enhancing the appeal of new models. One of the key highlights of the report is the increasing focus of major automakers on addressing concerns related to EV adoption. Issues such as high upfront costs, driving-range anxiety, and limited charging infrastructure are being tackled through innovative solutions and improved offerings. These efforts are expected to boost customer confidence and drive showroom footfalls. Additionally, the premiumization trend is likely to result in higher average selling prices, benefiting the overall market.It said "We believe these new launches will not only drive footfalls in showrooms, but also lead to higher average selling prices due to premiumization". Notably, upcoming Corporate Average Fuel Economy (CAFE-3) norms have intensified competition in the EV space, prompting automakers to introduce advanced and energy-efficient vehicles. With SUVs and electric vehicles leading the charge, the Indian automotive industry is on the cusp of a new era. Hybrids are also expected to gain traction, adding to the diversity of options available to consumers. As these trends continue, the future of the Indian automobile market looks both exciting and sustainable. (ANI)
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