Updated January 1st, 2024 at 14:57 IST
SUV sales rise, small cars fall in December
Sales of small cars like Alto and Baleno witnessed a 29 per cent decline, partly attributed to Maruti's moderation of wholesales.
The sales dynamics in the automotive sector witnessed a surge in sports utility vehicles (SUVs) in December, but a decline in the smaller car segment, as per data released by automakers on Monday.
Despite substantial discounts offered on smaller cars, their sales experienced a downturn, while SUVs, particularly in the premium category, saw an uptick in demand.
Maruti Suzuki and Mahindra & Mahindra reported a notable growth in domestic SUV sales, with increases of 24 per cent and 39 per cent, respectively.
Throughout the past year, the SUV segment of Indian carmakers has displayed resilience and sustained demand.
Mahindra, renowned for models like Thar, Scorpio, and XUV, achieved record-breaking sales in the SUV category multiple times in 2023, with consistent monthly growth ranging from 20 per cent to 57 per cent in the current fiscal year.
SUVs have notably constituted 36 per cent of Maruti's domestic passenger vehicle (PV) sales this fiscal year, a remarkable rise from the 22 per cent recorded in the previous fiscal year. For Mahindra, SUVs virtually constitute the entirety of its PV sales.
In response to the usual year-end trend of increased discounts by automakers and subdued demand for entry-level vehicles, Maruti Suzuki raised discounts on its lower-priced models by 40 per cent to 45 per cent.
However, sales of small cars like Alto and Baleno witnessed a 29 per cent decline, partly attributed to Maruti's moderation of wholesales.
In the two-wheeler segment, Bajaj Auto reported a 26 per cent increase in domestic sales, primarily driven by robust sales of its entry-level motorcycles in the first half of the month.
Analysts attribute this growth to the wedding season during the initial part of the month.
Bajaj's collaboration with Triumph motorcycles also contributed to the overall volume growth.
Monthly sales data from Tata Motors, TVS Motor, and Hero MotoCorp are expected to be reported later in the day.
(With Reuters Inputs)
Published January 1st, 2024 at 14:57 IST