Over the past two fiscals, the Covid-19 pandemic has changed the dynamics of many an industry. The passenger vehicles segment is one such.

While supply-chain issues have affected a raft of vehicle manufacturers, counterintuitively, models priced higher than the entry level have continued to find buyers.

Last fiscal, cars priced above Rs 10 lakh (or the premium segment) sold 5x faster than those with lower sticker prices, and notched up ~38% on-year growth compared with ~7% y-o-y growth for the latter.

Consequently, the market share of premium cars rose 500 basis points (bps) to ~30% last fiscal, compared with ~25% in fiscal 2021.