Average selling price of automobiles in India to reach ₹14.72L
What's the story
The price of automobiles in India is expected to rise at a compound annual growth rate (CAGR) of 4.5%, reaching an average selling price (ASP) of ₹14.72 lakh by 2029. This prediction comes from market research firm Jato Dynamics, which analyzed data from the past five years and future projections for the automotive industry. The ASP has already jumped by a whopping 41% in the last five years, going from ₹8.07 lakh in 2019 to ₹11.64 lakh this year.
Growth forecast
Price growth has been slowing down since last 5 years
The price of automobiles has been growing at a CAGR of 5.6% from 2019 to 2025. However, analysts expect this rate to slow down in the coming years. From 2026 to 2029, the CAGR is expected to be around 4.5%. This means that while prices will continue to rise, they won't do so as aggressively as they have in recent years.
Information
Factors for projected slowdown in automobile price inflation
The projected slowdown in automobile price inflation can be attributed to several factors. As the industry adapts to these changes, consumers can expect a more stable pricing environment for automobiles in India over the next few years.