BENGALURU: Sales of sports utility vehicles (SUVs) surged in December, while sales of smaller cars declined despite substantial discounts, according to data from Indian automakers released on Monday.
While entry-level vehicles continue to pose challenges for automobile makers, they have nonetheless experienced an upswing in sales of premium vehicles, catering to a more affluent demographic that remains largely unaffected by inflation.
Maruti Suzuki and Mahindra & Mahindra reported domestic SUV sales growth of 24% and 39%, respectively.
The SUV segment for Indian carmakers has thrived due to strong demand throughout the past year. Mahindra, known for SUV models such as the Thar, Scorpio, and XUV, achieved multiple months of record sales in this category in 2023, with monthly sales growth ranging from 20% to 57% in the current fiscal year.
SUVs constituted 36% of Maruti's domestic passenger vehicle (PV) sales so far this fiscal year, compared to 22% in the previous fiscal year, while accounting for almost all of Mahindra's PV sales.
During the year-end period, when automakers typically offer larger discounts, Maruti increased discounts on its lower-priced models by 40% to 45%. However, sales of its smaller cars like the Alto and Baleno saw a decline of 29%, partially attributed to Maruti's moderation of wholesales.
Among two-wheelers, Bajaj Auto's domestic sales rose by 26%, driven by strong sales of its entry-level motorcycles in the first half of the month. Analysts have noted that Bajaj and other two-wheeler manufacturers benefited from the wedding season that occurred during the first half of the month.
The robust demand for Triumph motorcycles, manufactured by Bajaj, has also contributed to volume growth. Tata Motors, TVS Motor, and India's leading two-wheeler maker, Hero MotoCorp, are expected to report their monthly sales data later in the day.__ Reuters
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