SUV Sales Upsurge in India Directed by Maruti, Small Cars Slew in December 2023

As per sales of Maruti when taken into consideration, the company scored for around 36% sales which was almost equal to the cumulative sales of Mahindra.

Published On: 02/01/24
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Mahindra & Mahindra and Maruti Suzuki showed domestic SUV sales growth of 24% and 39% YOY, respectively.
Further, sales of its small cars like the Baleno and Alto dipped down by 29%.

December witnessed a boost in sales of SUVs, where sales for small cars slithered even after bumper discounts, as depicted by the data given from Indian carmakers on 1st January, 2024.

Though the entry-level vehicles experienced a slew of sales because of inflation, carmakers have immensely benefited from the sales of high-end vehicles, providing a more well-off demographic largely unaffected by higher prices. Mahindra & Mahindra and Maruti Suzuki showed domestic SUV sales growth of 24% and 39% YOY, respectively.

The SUV segment of the country has hugely benefited from bumper demand throughout 2023.

Mahindra, the manufacturer of chic SUVs in the country like Scorpio, Thar, and XUV, had numerous months of record sales in the category of 2023. The company witnessed around 20-57% sales growth in each month for this financial year till now.

The bonanza sales of SUVs have accounted for around 36% total sales of Maruti domestic passenger vehicles till now this financial year, as compared to 22% with the last fiscal year, while cumulatively accounted for almost all Mahindra’s passenger vehicle sales.

The year-end, where auto giants commonly offer huge discounts, coupled with less demand for entry-level vehicles, urged Maruti to offer further discounts on its inexpensive models by around 40 to 45%.

Further, sales of its small cars like the Baleno and Alto dipped down by 29%. That was partly caused by Maruti's control over wholesales as well.

Tata Motors reported an official growth of 8% in domestic passenger car sales, without particularly specifying the growth rates of distinct categories of cars.

Among two-wheelers, TVS Motor’s and Bajaj Auto’s domestic sales exponentially rose around 26% and 27% respectively, whereas Eicher Motors’ Royal Enfield motorcycles dipped by 7%.

Bajaj and other two-wheeler manufacturers benefited from the wedding season that happened during the first half of the month, analysts commented.