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The Indian automotive market experienced a contrasting trend in October, with a surge in sports utility vehicle (SUV) sales amidst continued sluggishness in the small-car segment. This divergence highlights the evolving preferences of Indian consumers towards larger, premium vehicles.
Leading carmakers like Maruti Suzuki, India's market share leader, witnessed a significant 19.4% rise in SUV sales, setting a new record. Mahindra & Mahindra, another major player known for its SUV portfolio, achieved its highest monthly sales for the current fiscal year, recording a 25% increase. This growth is partly attributed to new launches like the 'Thar ROXX' and consistent sales momentum throughout the year.
Hyundai Motor India also reported its highest-ever monthly SUV sales, reaching 37,902 units. This surge in demand for SUVs reflects a broader trend in the Indian market, where consumers are increasingly opting for larger, feature-rich vehicles that offer a higher level of comfort and perceived safety.
However, the overall car market is experiencing a slowdown after two years of robust growth. Automakers are adapting by adjusting sales to dealers and offering higher discounts, as showrooms struggle with growing inventory levels. The festive season, which began in early October, provided a much-needed boost for dealers to clear their stock, with inventory levels decreasing from 85 days in September to 30 days for Maruti Suzuki by the end of October.
Despite the positive impact of the festive season, the demand for small cars remains weak. Maruti Suzuki's overall domestic sales declined by 5% due to a 20% drop in small car sales, while Hyundai Motor India witnessed a modest 0.8% rise. Tata Motors, which heavily relies on SUV sales, reported flat domestic sales, facing stiff competition from Mahindra.
Source: SUV sales a bright spot in Indian carmakers' October dispatches to dealers